Circle may sell itself instead of going public. Sources say the firm has had talks with both Coinbase and Ripple about a potential takeover. Circle filed for an IPO in April, aiming for a New York Stock Exchange listing.
Yet insiders report that the sale option is gaining steam. The firm hopes to reach a valuation of at least $5 billion, matching its IPO target.
Background on Circle’s IPO Effort
In early April, Circle took the formal step of filing paperwork for an IPO. The goal was to list its shares on the NYSE. While the filing did not set a final price or timing, Circle appeared committed to this path.
Executives planned a roadshow later in the year to pitch investors. Despite these plans, recent discussions suggest a shift in strategy might be underway.
Talks with Coinbase and Ripple
According to a Fortune report, Circle is holding informal discussions about selling to Coinbase Global or Ripple.
One banker explained that if Coinbase makes an offer, Circle would “sell in a heartbeat.” Another insider warned that the situation can change quickly, noting that “things change week by week.”
Also Read: Circle CEO Anticipates U.S. Executive Orders To Promote Crypto Adoption In Banking Sector
Circle’s Response
In a statement shared with Fortune, Circle said it has no plans to sell. The company insists it remains focused on its long-term goals, including moving forward with the IPO.
Still, these comments come as the talks continue behind closed doors. Circle has not fixed any terms or dates for its public offering, and the roadshow has not begun.
Circle and Coinbase’s Shared History
Circle and Coinbase have worked together since 2018. That year, they launched Centre Consortium, a joint partnership to issue the USDC stablecoin. This venture lasted until 2023, when Circle took full control of USDC’s governance.
Coinbase, however, gained an equity stake in Circle. The two companies still split revenue from USDC’s reserve interest income. Several terms in their agreement benefit Coinbase, reinforcing their close financial ties.
Ripple’s Interest and Financial Strength
Ripple, the crypto payments firm, has also shown interest in buying Circle. In April, Ripple made a takeover offer valued between $4 and $20 billion.
Circle rejected that bid as too low. Reports later surfaced that Ripple might have raised its offer to as much as $20 billion. Any deal from Ripple would likely include XRP tokens, the digital currency Ripple created, along with cash. As of March 31st, Ripple held about 4.56 billion XRP worth roughly $11.77.
Why Circle Might Sell?
Circle’s market value, if it can reach $5 billion, matches what it seeks in an IPO. Selling now could spare the firm the cost and uncertainty of a public listing. A sale to Coinbase would deepen their existing ties, as Coinbase already benefits from USDC revenues.
On the other hand, Ripple could offer a fresh partner with vast crypto holdings and clear payment network goals. With both companies eager to expand, Circle’s leadership might view a sale as a faster way to advance their business.
Circle Stands by IPO Plans
Despite these talks, Circle insists that it remains on track to go public. The company has not announced any change to its IPO timetable or structure.
Some experts believe that even if talks proceed, Circle could keep both paths open, continuing IPO preparations while still negotiating a sale. Either outcome will shape the future of USDC’s role in the crypto market.
Also Read: Circle Set To Debut New Crypto Payments Via Cross-Border Remittances