Circle Internet Financial, the issuer of the USDC stablecoin, is exploring a potential sale to Coinbase or Ripple

Circle Internet Financial, the issuer of the USDC stablecoin, is exploring a potential sale to Coinbase or Ripple, sources told Fortune—a move that could shift the company away from its planned public listing.

Circle Internet Financial, the issuer of the USDC stablecoin, is exploring a potential sale to either Coinbase or Ripple, according to four banking and private equity executives familiar with the matter.

The company had previously filed for an IPO in April.

Its pursuit of a listing is now in question as it engages in informal acquisition talks.

According to one of the executives, Circle is seeking a valuation of at least US$5 billion, be it through an IPO or a sale.

However, a spokesperson for Circle stated that the company is not for sale and remains focused on its long-term goals.

The company also declined to comment on its conversations with potential investors.

Recently, there have been discussions regarding a possible sale to Coinbase, with both firms aiming to create a joint venture to issue a US dollar-linked stablecoin.

The two companies had also co-founded the Centre Consortium in 2018 to oversee USDC issuance.

The consortium was later dissolved this year, with Coinbase taking an equity stake in Circle and continuing to share revenue from USDC reserves.

The revenue-sharing agreement includes terms more favorable to Coinbase.

While both firms typically split residual income from reserves backing USDC, Coinbase receives 100% of that income when the stablecoins are held on its platform.

Coinbase also holds veto rights over new third-party partnerships that could affect its USDC earnings, along with partial rights to Circle’s intellectual property in the event of insolvency.

One of the sources mentioned that the relationship between the two companies is so close that it can feel like they already operate as one.

Earlier this year, there were rumors of a potential merger between Circle and crypto exchange Gemini, but those talks never materialized.

According to one executive, Ripple had offered to buy Circle for about US$4 billion to US$5 billion in a deal that would involve a mix of cash and XRP, Ripple’s native token. However, the offer was declined as too low.

As of 31 March, Ripple held 4.56 billion XRP valued at US$11.77 billion and 37.13 billion XRP in escrow worth US$95.7 billion, according to its Q1 2025 XRP Markets Report, bringing its total XRP reserves to over US$107 billion.

Coinbase, on the other hand, may have more financial flexibility. As of the end of March, it held US$8 billion in cash and, being a public company, has access to capital markets for further fundraising.

Coinbase CEO Brian Armstrong recently said that the company is actively evaluating M&A opportunities but emphasized that integration, not acquisition, is often the more difficult part of the process.

Both companies have been active on the acquisition front.

Recently, Ripple agreed to acquire prime brokerage Hidden Road for US$1.25 billion.

Coinbase has also made several recent acquisitions, including crypto derivatives exchange Deribit for US$2.9 billion, the team behind privacy-focused project Iron Fish, and onchain advertising platform Spindle.

As of August, both companies' stock prices have declined significantly from their peaks in 2021.

Despite the setback, a deal could still be beneficial for both parties.

Coinbase is looking to expand its institutional offerings, while Circle is seeking to broaden its reach beyond the USDC ecosystem.

A combination would create a behemoth in the rapidly growing digital asset industry.

However, any deal would face regulatory scrutiny, especially given the recent collapse of FTX.

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