IPO Plans and Sale Discussions
Circle Internet Financial, issuer of the USDC stablecoin, filed for an IPO in April 2025—but informal talks with Coinbase and Ripple suggest a potential sale. Sources indicate Circle seeks a $5 billion valuation, mirroring its IPO target.
Key Points:
- Coinbase (largest U.S. crypto exchange) and Ripple (crypto payments firm) expressed acquisition interest.
- Circle maintains IPO plans but may pivot if a buyer meets its valuation.
- "If Coinbase wanted to buy them, Circle would sell in a heartbeat," a banking source told Fortune.
👉 Why USDC’s future hinges on these takeover talks
Coinbase’s Strategic Advantage
Coinbase holds unique leverage over Circle due to their shared governance of USDC:
- Revenue Split: 50% of USDC reserve income goes to Coinbase—100% if USDC is held on Coinbase’s platform.
Control Provisions:
- Coinbase must approve new USDC partnerships affecting its revenue.
- Coinbase gains partial IP control if Circle faces insolvency.
"They’re one company," a source remarked, highlighting Coinbase’s natural fit as a buyer.
Ripple’s XRP-Fueled Bid
Ripple’s offer of $4–5 billion (mostly in XRP + cash) was rejected as too low. Its resources include:
- $11.77B in liquid XRP.
- $95.7B in escrowed XRP (per Q1 2025 report).
Despite Ripple’s "meaningful balance sheet," Coinbase’s public company status ($8B cash on hand) makes it a stronger contender.
Market Context
- IPO Revival: eToro’s 29% first-day jump may bolster Circle’s IPO confidence.
- Coinbase’s Momentum: Joined S&P 500 (May 2025); shares at **$265** (~$56B market cap).
Recent Acquisitions:
- Ripple bought Hidden Road ($1.25B).
- Coinbase acquired Deribit ($2.9B) and privacy-focused Iron Fish.
FAQ Section
Q: Why would Circle sell instead of going public?
A: A $5B+ offer could expedite liquidity and avoid IPO volatility.
Q: How does USDC’s revenue model work?
A: Reserves generate interest income, split 50-50 (or 100% to Coinbase for on-platform USDC).
Q: What’s Ripple’s biggest hurdle in buying Circle?
A: Coinbase’s existing control over USDC governance complicates rival bids.
👉 How stablecoins like USDC reshape crypto markets
Conclusion
Circle’s path—IPO or sale—hinges on valuation and strategic fit. With Coinbase’s dominance and Ripple’s deep pockets, the outcome could redefine the stablecoin landscape.
—Leo Schwartz and Jeff Roberts contributed reporting.
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