Stablecoin issuer Circle has recently denied reports that it is in talks with Coinbase or Ripple for a possible sale. “Circle is not for sale. Our long-term goals remain the same,” the company said.
This comes as Circle is gearing up for its IPO, aiming for a valuation of at least $5 billion. Earlier, Circle reportedly turned down a $4–5 billion offer from Ripple.
Circle’s IPO Plans
While there are rumors that Ripple may have raised its offer to around $11 billion, Circle appears to be focused on going public. Circle had filed paperwork in early April and had hired investment banks to help with its IPO plans, but the timing is not confirmed yet.
In January 2024, Circle had mentioned that it was reconsidering going public after it had delayed a planned IPO in December 2022.
Who Could Be the Buyer- Ripple or Coinbase?
Cardano founder Charles Hoskinson recently weighed in on the idea of Ripple buying Circle, saying it could improve the crypto space.
“There’s this Coinbase-A16Z-Circle mafia where they’ve built an ecosystem that’s self-serving. If you’re outside it, you get blacklisted — it’s hard to get listed, hard to get liquidity, and hard to access stablecoins,” Hoskinson said.
By getting Ripple into the stablecoin game, he believes it could break the monopoly and make way for newer, more diverse projects.
Is Coinbase A More ‘Suitable’ Candidate?
On the other side, Coinbase and Circle have deep ties: they co-created USDC, share revenue from its reserves, and Coinbase even owns a stake in Circle. Coinbase gets 100% of USDC earnings if funds are held on its platform.
Also, Circle cannot enter new USDC-related partnerships without Coinbase’s approval, and Coinbase gets partial IP rights if Circle goes bankrupt. With so much control and shared profit already in place, many see Coinbase as the most likely buyer.
Will Circle Go Ahead With IPO?
But since Circle has clarified now, only time will tell what happens next. The IPO market recently got a boost when eToro, the online trading platform, jumped 29% on its first day, raising $620 million at $52 per share. eToro’s strong debut may encourage Circle to move forward. But some investors believe that it often takes time to judge how new public companies will perform in the long run.
