Ripple and Coinbase Eye Circle as Company Targets $5 Billion IPO

Circle, the company behind the USDC stablecoin, is weighing its options as it moves forward with IPO plans while also entertaining acquisition interest from Ripple and Coinbase. The dual-track approach comes during a period of shifting market conditions and rising attention on stablecoins.

Good to know

• Circle is targeting a $5 billion valuation for its IPO.
• Ripple made an acquisition offer in the $4 billion to $5 billion range, which Circle declined.
• Coinbase and Circle have worked together since 2018 through the Centre Consortium.

Circle officially filed for its initial public offering on April 1, aiming to complete the process by the end of the month. However, just a few days later, the company hinted at a potential delay, citing broader economic uncertainty. The IPO remains part of Circle’s forward plans, with a valuation target of at least $5 billion.

Ripple and Coinbase approach with offers

While the IPO filing is public, behind the scenes, informal talks with Ripple and Coinbase have also taken place. Ripple attempted to buy Circle on April 30 with an offer in the $4 billion to $5 billion range. Circle turned it down, believing the bid did not meet its valuation expectations.

The potential structure of each deal differs. Ripple proposed to fund the purchase using a mix of cash and XRP, the token it developed. Coinbase, by contrast, would likely pay using a combination of cash and equity.

Circle and Coinbase have shared history

Coinbase is not a new player in Circle’s orbit. The two companies formed the Centre Consortium in 2018 to set frameworks for fiat-backed stablecoins, with USDC at the core of that project. Coinbase continues to support USDC on its platform and has remained a key distribution partner.

Although Circle has not committed to a sale, the parallel discussions suggest the company is exploring all strategic options as market dynamics shift and investor sentiment evolves.