In a direct response to growing speculation, Circle has officially denied any plans to sell itself to either Ripple Labs or Coinbase. The company, which issues the USDC stablecoin, made the statement through a spokesperson to PYMNTS, rejecting reports that it had entered informal talks to explore a sale at a valuation of around $5 billion.
This denial comes after weeks of swirling rumors – some of them quite detailed. Notably, Fortune reported that Circle was indeed weighing a sale at the same valuation it’s targeting for its long-awaited IPO. According to Bloomberg and other sources, Ripple reportedly made an initial offer between $4 and $5 billion, which was rejected. Coinbase, in turn, allegedly entered the mix, triggering a bidding war between two of the most powerful names in U.S. crypto.
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🧠 IPO Plans Still in Play, But With No Date in Sight
Even as it shuts down acquisition chatter, Circle remains focused on going public. The company first announced IPO plans back in late 2022, but they’ve since been delayed and reshuffled. Most recently, in January 2024, Circle restarted its IPO ambitions and lined up investment banks to underwrite the offering. However, no date has been confirmed, and the market is watching closely.
This uncertainty, combined with the high-profile acquisition rumors, has raised questions about Circle’s long-term independence and how much flexibility it has given its joint venture with Coinbase.
What makes this story more complex is the existing relationship between Circle and Coinbase. In 2018, both companies co-founded the Centre Consortium to manage USDC issuance. Coinbase still holds a minority stake in Circle and profits from the assets backing USDC. As part of that agreement, Circle cannot enter any partnerships that threaten Coinbase’s USDC revenue without Coinbase’s approval.
That arrangement likely gives Coinbase a first-mover advantage in any acquisition discussions, should they ever be revived. Still, TheCryptoBasic’s thread makes it clear that, for now, Circle is publicly committed to remaining independent.
📈 What If Ripple Actually Bought Circle?
Just days ago, our team at CaptainAltcoin explored this exact possibility in a feature article: Here’s the XRP Price If Ripple Buys Circle. The article outlines how such a deal could drastically alter XRP’s position in the stablecoin and payments space.
In the optimistic scenario, Ripple’s acquisition of Circle would:
- Put USDC under Ripple’s umbrella, effectively giving XRP indirect control over one of the top two stablecoins
- Strengthen Ripple’s DeFi and CBDC ambitions, creating synergy between RLUSD and USDC
- Potentially drive XRP to $3.80 or higher, based on demand for integrated payments and smart contract functionality
While Circle’s denial now puts that scenario on pause, the analysis remains relevant – because if the IPO struggles or macro conditions shift, Ripple may return to the table with an even stronger offer.
Read also: XRP Could Be the One to Dethrone Bitcoin – Here’s How It Might Happen
🧭 What’s the Final Take?
Circle’s public denial may cool the headlines for now, but the underlying dynamics haven’t changed. Ripple is sitting on a massive balance sheet. Coinbase already has built-in leverage through its Centre agreement. And Circle still hasn’t IPO’d.
Even if no sale happens this quarter, Circle is at the center of a power struggle between two U.S. crypto giants, and the outcome could reshape stablecoin dominance for years to come.
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