Circle Pursues IPO Plans Amidst Talks with Ripple and Coinbase on Potential Acquisition: Fortune

Circle Internet Financial, the issuer of USDC, has vowed to continue with the expected initial public offering (IPO) that the company filed in early April, despite the news that Coinbase or Ripple will likely buy the company.

According to Fortune, four banking and private equity executives confirmed that Circle asks for at least $5 billion for any potential sale, which is the valuation it’s targeting for the IPO.

However, the report suggested that the acquisition talk might quash the long-awaited IPO.

Meanwhile, in April, Ripple’s $4 to $5 billion bid for the acquisition of Circle was rejected. Circle branded the bid “too low,” as the amount could be realized in its IPO.

Fortune reported that one of the bankers quipped, “If Coinbase wanted to buy them, Circle would sell in a heartbeat.” However, “things change week by week,” another banker said.

Despite the acquisition rumours, the company’s comment reiterated Circle’s commitment to go public through its proposed IPO.

“Circle is not for sale. Our long-term goals remain the same,” the company said Monday in an emailed statement to Fortune.

Coinbase is the Favourite to Buy Circle

Although the potential acquisition of Circle has yet to be finalized, Coinbase, the largest crypto exchange in the U.S., is favoured as the potential buyer due to its relationship with the company.

In 2018, Coinbase and Circle launched Centre Consortium, a joint venture responsible for issuing the USDC stablecoin.

After the terms of that venture ended in 2023, Coinbase gained an equity stake in Circle, while Circle assumed all governance for USDC. The deal provided several provisions that favoured Coinbase.

“The baseline provision of the Circle-Coinbase calls for each party to receive 50% of residual revenue generated from reserves backing Circle’s USDC stablecoin, according to Circle’s S-1 filing. Significantly, however, Coinbase earns 100% of that revenue if the USDC in question is stored on the crypto exchange’s platform,”

The report stated.

Nonetheless, Ripple’s big balance sheet, which consists of over 40 billion XRP in escrow and is worth more than $100 billion as of March 31st, 2025, might also be an advantage, as any bid by Ripple would likely consist of XRP.

Alternatively, Coinbase would pay with cash and stock, and the company’s balance sheet shows $8 billion in cash as of March 31.

Circle’s USDC Hits $60B Market Cap Amid Rising Stablecoin Adoption

Despite the ongoing acquisition issue, Circle’s USDC’s market cap surged to a record $60.2 billion in March 2025, doubling its value in a year.

USDC’s supply grew by $16.3 billion in Q1 2025, outpacing Tether’s $4.4 billion growth. The growth is attributed to USDC’s adoption on the Solana blockchain and regulatory clarity. Actually, stablecoin is being adopted by many, including giant institutions.

In fact, African farmers are increasingly adopting stablecoins to bypass high transaction fees and slow cross-border payments caused by underdeveloped banking systems.