Circle, the issuer of the USDC stablecoin, is reportedly in informal talks to sell its business to either Coinbase, a leading U.S. crypto exchange, or Ripple, the company behind XRP, according to Fortune.
The discussions come as Circle, which filed for an initial public offering (IPO) in April, seeks a valuation of at least $5 billion.
With a market capitalization exceeding $60 billion, USDC is the second-largest stablecoin, trailing only Tether’s USDT. Sources cited by Fortune suggest Coinbase is the frontrunner to acquire Circle.
The exchange already generates up to 100% of the revenue from USDC reserves held on its platform and owns a stake in Circle. Additionally, Coinbase holds veto power over new Circle partnerships that could impact USDC-related revenue.
Ripple, meanwhile, previously offered to buy Circle for $4–5 billion, with part of the deal involving XRP tokens. The proposal fell through. Ripple holds over $100 billion in XRP tokens on its balance sheet, giving it significant financial flexibility.
Circle representatives have denied any sale negotiations. However, a Fortune source in the banking sector claims that Circle would likely accept a deal from Coinbase without hesitation if one were proposed.
Also read:
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The potential sale underscores the growing consolidation in the crypto industry, with major players like Coinbase and Ripple vying for control of key stablecoin infrastructure. As Circle navigates its IPO and these reported talks, the outcome could reshape the stablecoin market and its integration with broader crypto ecosystems.
