Circle, the company behind the popular USDC stablecoin, is reportedly in talks to sell to one of the industry leaders between Coinbase and Ripple. This news comes as the USDC issuer pushes forward with plans for an initial public offering (IPO) to list on the New York Stock Exchange.
What Sparked the Sale Talks?
Circle’s rise to prominence stems from USDC, a stablecoin pegged to the U.S. dollar with a massive $61.7 billion market cap, making it the second-largest stablecoin globally. Recently, Ripple made waves with a $4 billion to $5 billion offer to acquire Circle, which was rejected as too low, with rumors swirling of a bumped-up $20 billion bid, though unconfirmed.
Coinbase, a major crypto exchange and minority stakeholder in the stablecoin issuer, is also in informal discussions, hinting at a possible bidding war. These talks follow Ripple’s aggressive moves, like launching its stablecoin, RLUSD, and acquiring brokerage firm Hidden Road for $1.25 billion.
Circle’s decision to explore a sale likely comes from its desire to maximize value amid a crypto-friendly regulatory shift under the Trump administration and intense market competition. Rejecting Ripple’s initial offer suggests the stablecoin issuer believes its worth exceeds current bids, especially with its IPO on the horizon.
Details of Circle’s IPO Plans
Circle filed for an IPO on April 1, 2025, aiming to trade under the ticker “CRCL” on the NYSE. JPMorgan Chase and Citigroup are the lead underwriters. The company targets a $4 billion to $5 billion valuation, though it previously sought $9 billion in a failed 2022 SPAC merger. However, economic uncertainty from new U.S. trade tariffs has the USDC issuer “watching the market,” potentially delaying the IPO.
Despite generating $1.67 billion in revenue in 2024, the stablecoin issuer’s profit was only $156 million, largely due to hefty payments to distributors like Coinbase. The company sees the IPO as a way to fund global expansion and strengthen USDC’s dominance, but a lucrative sale to Coinbase or Ripple could shift Circle’s strategy entirely.
