Hassan Maishera
TL;DR
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USDC issuer Circle is reportedly courting buyers at a valuation of at least $5 billion.
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Its stablecoin, USDC, is currently the second-largest, with a $60 billion market cap.
Coinbase or Ripple Could Acquire Circle
Circle Internet Financial, the issuer of the USDC stablecoin, is reportedly in talks with potential buyers at a valuation of roughly $5 billion. Fortune reported on Monday that the sales talks involve Circle’s longtime partner, Coinbase, and recent stablecoin rival, Ripple.
While citing sources close to the matter, Fortune wrote that,
“There is a chance, though, that Circle’s IPO won’t come to fruition since the company has recently taken part in informal talks to sell itself to Coinbase Global, the largest crypto exchange in the U.S., or to crypto payments company Ripple, according to four banking and private equity executives. These people, who asked not to be identified in order to comment on private negotiations, said Circle is seeking at least $5 billion, which is the valuation that it’s targeting for its IPO.”
This latest development comes roughly three weeks after reports emerged that Ripple offered to acquire USDC issuer Circle for $4-$5 billion, but the offer was rejected as too low.
Furthermore, Circle filed a prospectus for an initial public offering in April as it looks to become the latest cryptocurrency company to go public.
Coinbase and Circle have been in business for years, having launched Centre Consortium, a joint venture responsible for issuing the USDC stablecoin, in 2018. However, when the terms of that venture wound down in 2023, Coinbase gained an equity stake in Circle, while Circle assumed all governance for USDC.
The two entities have continued to share revenue from USDC’s reserve interest income. Circle’s USDC is currently the second-largest stablecoin, with a market cap of $60 billion.
Meanwhile, Ripple recently launched its RLUSD stablecoin on Kraken as it looks to compete with industry giants USDT and USDC.
