Circle, the issuer of the USDC stablecoin, has taken significant steps toward an initial public offering (IPO). However, recent reports suggest that the IPO may face uncertainty as the company engages in informal discussions about a potential sale to eith

According to sources familiar with the negotiations who spoke with Fortune, Circle is looking for a valuation of at least $5 billion, the same sum it is aiming for its IPO.

Circle, the issuer of the USDC stablecoin, is making significant progress toward its initial public offering (IPO). However, recent reports suggest that the IPO may face uncertainty as the company is also engaged in informal discussions for a potential sale to either Coinbase Global (NASDAQ:COIN) or Ripple (NYSE:R).

According to sources familiar with the negotiations who spoke with Fortune, Circle is seeking a valuation of at least $5 billion, the same amount it is aiming for in its IPO. A banker involved in the discussions said that if Coinbase made a serious offer, Circle would likely accept it quickly, highlighting the close relationship between the two businesses.

“If Coinbase wanted to buy them, Circle would sell in a heartbeat,” the source said. Another executive added that the situation is fluid, with developments occurring on a weekly basis.

Despite these talks, Circle is still planning for its IPO. The firm has yet to finalize the terms for the offering or launch its roadshow. Notably, both Circle and Coinbase have a history together; they co-founded the Centre Consortium in 2018, which is responsible for issuing USDC.

As part of their partnership, Coinbase acquired an equity stake in Circle when the venture concluded in 2023, while Circle obtained full governance of USDC.

The financial arrangement between Circle and Coinbase has been mutually beneficial, with both companies sharing the revenue generated from USDC’s reserves. According to Circle’s S-1 filing, the agreement stipulates that each party will receive 50% of the residual revenue from the reserves. However, Coinbase retains 100% of the revenue when USDC is held on its platform, a situation that has likely become more prominent as Coinbase’s earnings reports indicate increasing income from this partnership.

Expert Claims Ripple Has Advantage

Meanwhile, Ripple has also shown interest in acquiring Circle, reportedly offering between $4 billion and $5 billion for the company, which was deemed too low. Any potential offer from Ripple would likely involve a combination of its native cryptocurrency, XRP, and cash, utilizing Ripple’s substantial balance sheet, which includes billions of dollars in XRP.

In contrast, Coinbase could fund an acquisition using cash and stock, given that it had around $8 billion in cash as of March 31, 2025. Coinbase CEO Brian Armstrong has acknowledged the company’s openness to mergers and acquisitions but noted the importance of successful integration following a purchase.

However, according to market expert Paul Barron’s update on social media site X (formerly Twitter) this Monday, Ripple has the edge in acquiring the stablecoin powerhouse, with a potential price tag of $9 to $11 billion.

XRP, on the other hand, is trading at $2.38, up 14% on the month. Year-to-date, the altcoin has seen triple-digit gains, outperforming the top ten largest cryptocurrencies with a 367% increase.