Circle Internet Financial Explores Selling Itself to Coinbase or Ripple

Circle Internet Financial had conversations about selling itself to the largest U.S. exchange, Coinbase Global, or the crypto payments firm Ripple.

Circle Internet Financial has held conversations with the largest U.S. exchange, Coinbase Global, and the crypto payments firm Ripple about selling itself, sources familiar with the matter said.

The sources, who requested anonymity while discussing sensitive matters, added that Circle is positioned to accept at least a $5 billion bid.

The company, which is known for its USD stablecoin, had previously disclosed in a filing that it is considering an IPO. It filed for the IPO last month and is still working out the terms for the IPO, and there is no set launch date for the roadshow.

Coinbase partnered with Centre Consortium, which mints the USDC stablecoin, to launch the stablecoin in 2018. When those terms ended in 2023, Coinbase acquired an equity stake in Circle, and USDC governance shifted entirely to Circle, reported Bloomberg in May.

The firms have been sharing revenue from reserves’ interest on USDC, but this arrangement is beneficial for Coinbase.

Coinbase has considerable operational control over Circle under the current agreement. This includes a clause that, in the event of insolvency, grants Coinbase partial control over Circle’s intellectual property and prohibits Circle from entering into any significant new distribution or partnership agreements with a third party for USDC revenue without Coinbase’s approval.

Many people believe that Coinbase is the most sensible buyer of Circle.

However, Ripple possesses a sizable war chest. The company had previously tried to purchase Circle for $4 billion to $5 billion, but the bid was declined as too low.

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