Ripple or Coinbase May Buy Circle Amid IPO Plans
Circle, the issuer of USDC stablecoin, is still planning an initial public offering (IPO), but has reportedly been in informal discussions with Ripple and Coinbase about a potential sale, according to Fortune.
Circle denied these rumors in an email to Cointelegraph, stating, "[it] is not for sale," and that its "long-term goals remain the same."
The report suggests Circle is targeting a $5.billion valuation for the IPO, according to four banking and private equity sources cited by Fortune.
Ripple allegedly tried to acquire Circle on April 30, but its $4 billion to $5 billion offer was rejected as too low.
If Ripple or Coinbase were to pursue a purchase, the payment terms would vary.
Ripple would use cash and XRP, while Coinbase would offer a mix of cash and stock.
Coinbase and Circle have an existing relationship that began in 2018 with the launch of the Centre Consortium, which aimed to establish standards for fiat-backed stablecoins like USDC.
Coinbase also collaborates with Circle to list USDC on its exchange.
Circle filed for an IPO on April 1, aiming to complete the process by the end of the month, but later signaled it might delay the IPO due to economic uncertainty.
Bitwise predicted in December 2024 that 2025 would be the year of the crypto IPO, and the prediction is starting to come true.
In addition to Circle, crypto exchanges Gemini and Kraken are reportedly considering IPOs in 2025 or early 2026, amid a more favorable regulatory stance from the Trump administration.
These plans had been on hold during the imposition of broad tariffs by the Trump administration, which caused market instability.
However, with tariffs now suspended or reduced, markets have rebounded.
On May 12, Cointelegraph reported that Bitcoin was 4.8% away from its all-time high of $109,800.
Ethereum, XRP, and Solana have also seen significant gains over the past month.
The S&P 500 has surged 15.6% in the past month, according to Google Finance.
Sources:
https://cointelegraph.com/news/circle-plans-ipo-talks-ripple-coinbase-could-lead-sale-report
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