While its IPO seemed back on track, Circle quietly explored other options. According to sources cited by Fortune, the USDC stablecoin issuer engaged in informal discussions with Coinbase and Ripple for a potential $5 billion sale.
If Coinbase wanted to buy them, Circle would sell without hesitation.
A source cited by Fortune
Circle considered a $5 billion sale instead of an IPO
Circle, which officially filed its IPO last month, didn’t just rely on one scenario. Concurrently, the company explored a direct resale, which would have valued it in line with estimations by JPMorgan and Citi, the two banks leading its IPO process.
The exchanges mainly involved Coinbase, already a minority stakeholder in Circle, and Ripple, which recently launched its own stablecoin, RLUSD. According to Bloomberg, Ripple even made a purchase offer… quickly rejected.
A Plan B before the IPO
The partnership between Circle and Coinbase for USDC lies at the core of both companies’ economic models. They share revenue generated by USDC reserves backed by rewarding assets. A merger would have radically transformed the stablecoin ecosystem, but it’s no longer on the table.
In an email statement, Circle asserted it’s not for sale, reiterating its firm intention to go public. Remember, the company previously attempted an IPO via SPAC in 2021, later abandoning the process due to a strict SEC.
Close Ties with Coinbase
The partnership between Circle and Coinbase around USDC is central to both companies’ business models. They share revenue from USDC reserves backed by earning assets. A merger would have fundamentally reshaped the stablecoin ecosystem, but it’s no longer under consideration.
In an email statement, Circle asserted it’s not for sale, reaffirming its strong commitment to going public. The company previously tried an IPO via SPAC in 2021, only to halt the process due to strict SEC regulations.
Ripple, the Surprise Guest
Ripple’s interest is significant. With the launch of its own stablecoin, the California-based company now has new ambitions in this key market. An acquisition of Circle would have given it direct access to USDC leadership and substantial revenue from reserves.
While Circle remains officially committed to an IPO, these revelations highlight how strategic the stablecoin sector has become. Behind the scenes, big moves continue.
