Ripple and Coinbase in Talks to Buy Circle Amid IPO Uncertainty

Ripple and Coinbase Eye Circle as IPO Plan Faces Major Uncertainty

The crypto industry is making buzz as Circle, the company that brought the USDC stablecoin, is going ahead for its long-pending IPO. But while the public listing remains in play, in the background major industry players such as Coinbase and Ripple are negotiating to acquire the organisation outright. This has sent the sector into a combination of excitement and confusion. 

Circle’s IPO vs. Sale Talks

In early April, Circle filed to go public, aiming for a $5 billion valuation. However, people familiar with the matter say that the company is also having informal talks with Coinbase and Ripple about a possible sale. While the company insists it’s not for sale, sources say if Coinbase made a strong offer, the company would likely take it.

Coinbase and Circle have a long history. They co-founded the Centre Consortium in 2018, which helped launch and manage USDC. When that partnership ended in 2023, Coinbase received equity in the organisation, and it took full control of USDC. Despite the split, the two still share revenue from USDC’s reserves. 

It even has the upper hand in their current deal. If USDC is stored on the platform, the exchange keeps 100% of the revenue from those reserves. This setup gives it influence over company's future decisions, making them a likely buyer if Circle decides to sell.

Ripple, on the other hand, also made a move. It reportedly offered $4 to $5 billion to buy Circle but was turned down. Ripple has a large balance sheet, mostly made up of its XRP token, which could help fund such a deal.

A Changing Crypto Landscape

These talks are happening at a critical time. The crypto industry is trying to bounce back after years of strict regulation and weak IPO markets. But things are beginning to change.

In December 2024, Bitwise predicted that 2025 could become the "year of the crypto IPO." Circle is not the only company hoping to go public. Gemini and Kraken are also considering IPOs, especially as U.S. President Donald Trump pushes for a crypto-friendly environment. 

Recent IPOs like eToro’s impactful debut, with shares increasing by 29% on the first day, have accelerated the market hopes. This could contribute in boosting firm's confidence for moving forward with its own listing.

Legal Wins and Setbacks

Ripple recently got relieved from a major case with the SEC, settling with a fine of $50 million. While the case did not include an admission of guilt, it winds up a long lawsuit that has weighed down the XRP currency. Now, Ripple is freer to do business in the U.S. and abroad, which could boost investor confidence. The currency is currently trading at $2.36 with an increase of 2.72% in the last 24 hours as per CoinMarketCap. 

Meanwhile, Coinbase is dealing with a major cyberattack. Hackers accessed some customer information but didn’t get passwords or login credentials. The company expects losses between $180 million and $400 million. The U.S. DOJ is investigating the culprits involved in the case, but Coinbase is not under investigation. 

What This Means for Crypto

The future of Circle, whether it becomes public or is acquired, may determine the upcoming scenario of stablecoins and crypto regulations. If the company partners with Coinbase or Ripple, it may revolutionize how USDC is operated and expand in terms of its exposure. 

Simultaneously, with more organizations planning IPOs, with regulatory authorities becoming more flexible, the digital assets industry is steadily entering a new phase.