USDC Issuer Circle in Secret Talks to Sell Itself to Coinbase or Ripple

Highlights:

• Circle explores a $5 billion sale with Coinbase and Ripple as top contenders.
• Ripple offers cash and XRP; Coinbase offers cash and stock for Circle.
• Coinbase has $11.3 billion in liquid assets and is open to more acquisitions.

Circle Internet Financial, the issuer of the second-largest stablecoin, is reportedly exploring a sale valued at $5 billion or more, according to Fortune. Potential buyers include Coinbase, a longtime partner, and Ripple, a recent competitor. These discussions are ongoing while Circle continues plans for an initial public offering (IPO).

Circle is reportedly in talks with Coinbase and Ripple for a potential acquisition, according to banking and private equity sources. Ripple’s $4-5 billion bid, which was likely to include XRP and cash, was rejected. Coinbase CEO Brian Armstrong stated there is nothing to announce…

— Wu Blockchain (@WuBlockchain) May 19, 2025

Circle’s Sale Sparks Strategic Battle Between Ripple and Coinbase for USDC Control

In April, Circle officially registered its IPO with the Securities and Exchange Commission (SEC) but did not disclose a valuation. Later that month, Ripple offered between $4 billion and $5 billion to acquire Circle, but the offer was declined as too low. If Ripple or Coinbase buys Circle, the deal would be different. Ripple would pay using XRP, a cryptocurrency it developed, along with cash. Coinbase would pay with cash and stock.

If Ripple paid the same price, Circle might still pick Coinbase. Circle and Coinbase exchange have worked together for a long time. They started the CENTRE Consortium to manage USDC. USDC is the top stablecoin on Coinbase. Last year, Circle paid Coinbase about $900 million in distribution costs. 

The Paul Barron Network says this sale is about more than just buying a company. Whoever owns USDC will get a big spot in the growing stablecoin market. Stablecoins are starting to compete with payment giants like Visa and Mastercard. Both Coinbase and Ripple know USDC could become very valuable soon.

Coinbase Well Positioned to Make a Major Acquisition

Coinbase recently completed a $2.9 billion acquisition of Deribit. This acquisition will significantly strengthen Coinbase’s presence and competitive position in the crypto options market. After the deal, Coinbase CEO Brian Armstrong told Bloomberg that the company is still open to more acquisitions. He said Coinbase is always looking for mergers and acquisitions, especially with international firms that can help speed up product development and growth. 

When asked about Circle, Armstrong did not confirm or deny. He said there was “nothing to announce” at that time. “If Coinbase wanted to buy them, Circle would sell in a heartbeat,” one of the sources told Fortune Crypto.

Coinbase CEO Brian Armstrong is on Capitol Hill as crypto executives push for stablecoin legislation to be revived. Senators are working on legislation backed by the crypto industry that faltered after a furor over President Trump’s crypto ventures https://t.co/tm6T3OeNVd pic.twitter.com/gjhEkIXn3i

— Bloomberg TV (@BloombergTV) May 14, 2025

Coinbase, having gone public via direct listing in 2021, is set to join the S&P 500 on May 19. Following this announcement, its stock surged 25% last week, though it remains below its peak price of $349.75 reached in December.

Coinbase looks strong enough to make the deal. Recent reports indicate Coinbase has about $8.5 billion in cash and $2.8 billion in cryptocurrency. This totals roughly $11.3 billion in liquid assets. While the company has enough funds for the deal, completing it could be complex. Coinbase might need to adjust its finances, take loans, or move money around. It would be a big decision.