Ripple and Coinbase Are Reportedly in Talks to Acquire Circle, the $61 Billion USDC Issuer

Ripple and Coinbase are reportedly engaged in acquisition talks with Circle, the $61 billion issuer of USDC. The informal discussions have begun between the companies and Circle executives.

Amidst a burgeoning stablecoin sector, both Ripple and Coinbase are reportedly in the running to acquire Circle, the $61 billion issuer of USDC.

According to reports by Barron's, informal discussions have begun between the companies and Circle executives. As the companies prepare their bids, the crypto sector is eagerly watching the outcome, which could have significant implications for market leadership and investor sentiment.

Earlier this year, rumors swirled about a $1 billion bid from Ripple to acquire Circle. However, later reports suggest that bids from both companies could now reach up to $11 billion, a testament to the increasing importance of stablecoins in the evolving digital asset landscape.

With plans to launch its own USD-backed stablecoin in 2025, Ripple is positioning itself to become a major player in the growing stablecoin sector.

Acquiring Circle would provide Ripple with immediate access to a fully regulated and established stablecoin infrastructure, a critical asset as Ripple expands its cross-border payments network into new markets.

Circle's strong record in compliance and its vast global banking relationships would also be highly valuable to Ripple. These assets would help Ripple navigate the complexities of expanding its payments network into regulated markets around the world.

The deal would also align Ripple’s cross-border payment tools, powered by XRP, with stablecoin-based settlement solutions, catering to the evolving needs of institutional investors.

Furthermore, USDC’s broad adoption across major cryptocurrency exchanges and DeFi platforms would bring significant liquidity and market share to Ripple. This synergy would support XRP’s role as a bridge asset in on-chain financial systems, enabling seamless integration of USDC functionality within the XRP Ledger for enhanced utility.

As Ripple expands its ambitions to control payment rails and stablecoin flows in one ecosystem, the company is aiming to streamline transactions using both XRP and USDC.

This integration would likely drive higher institutional demand for XRP due to added functionality and liquidity, ultimately increasing the token’s price and liquidity.

Coinbase is engaging in acquisition discussions with Circle with the goal of broadening its footprint in the fast-growing stablecoin market.

As the primary issuer and custodian partner of USDC, Coinbase already plays a key role in its operations. Acquiring Circle would allow Coinbase to manage USDC in-house and integrate it more deeply into its exchange offerings.

Moreover, this acquisition would position Coinbase to compete directly with Tether, the issuer of USDT, the largest stablecoin.

Coinbase’s new international expansion strategy aligns well with a broader push for regulated stablecoins in various global jurisdictions. This deal would support Coinbase’s goal of becoming the preferred provider of stablecoin services in regulated markets.

Coinbase’s large retail and institutional user base would facilitate faster adoption of USDC products after the acquisition. This integration would span Coinbase Wallet, Base, and institutional custody platforms, expanding cross-border payments, on-chain finance, and stablecoin yield services.

A full acquisition would also eliminate potential conflicts arising from Coinbase’s cooperation with Circle. It would grant Coinbase direct governance, treasury, and issuance control over USDC, improving efficiency, responsiveness, and user trust within the USDC ecosystem.

This integration would be crucial for managing and expanding USDC’s role in the rapidly evolving digital asset industry.