Stablecoin issuer Circle Internet Financial Ltd. could potentially be sold for more than $5 billion

The publication cited four sources as saying that the company recently held “informal talks” about an acquisition.

Stablecoin issuer Circle Internet Financial Ltd could potentially be sold for more than $5 billion, Fortune reported today.

The publication cited four sources as saying that the company recently held “informal talks” about an acquisition. It’s believed that the former company could be bought by Coinbase Global Inc or Ripple Labs Inc. The former company operates the largest cryptocurrency exchange in the U.S., while the latter offers a stablecoin-powered payment platform.

The report comes weeks after Circle filed for an initial public offering. According to Fortune, the company hasn’t yet set terms for the listing or launched its roadshow. The publication’s sources stated that “there is a chance” Circle will decide to pursue a sale instead of an IPO.

The company pushed back against the report in a statement. “Circle is not for sale,” a Circle spokesperson told Fortune. “Our long-term goals remain the same.

The company first attempted to go public in 2022 through a SPAC, or special-purpose acquisition company, merger. The deal was canceled following regulatory scrutiny from the U.S. Securities and Exchange Commission.

Circle is the issuer of USDC, a popular stablecoin pegged to the U.S. dollar. The cryptocurrency is backed by reserves of cash and cash-equivalent assets such as U.S. Treasury Bills. Circle generates revenue from interest generated by those reserves.

The circulation of USDC is about $60 billion, which represents more than a quarter of the stablecoin market. Circle’s revenue surged from $15.4 million in 2020 to $1.68 billion last year. The company achieved that growth while maintaining profitability: It ended 2024 with net income of $156 million.

In its IPO filing, Circle stated it may explore additional sources of revenue growth down the line. The effort will see the company launch a so-called TMMF investment vehicle. This is a blockchain-powered version of a money market fund, a type of low-risk fund that invests in cash and short-term debt.

Coinbase is seen as Circle’s most likely acquirer. Centre Consortium, the organization that was responsible for issuing USDC until 2018, was jointly operated by the two companies. They subsequently signed an agreement that grants 50% of the interest generated by USDC’s dollar-denominated asset reserves to Coinbase.

Coinbase’s share increases to 100% when USDC is stored on its cryptocurrency platform. Furthermore, it can prevent Circle from signing partnerships that may affect their revenue sharing agreement. Fortune cited one of its sources as saying that “I feel like they’re one company.”

Coinbase has made multiple acquisitions since the start of the year. Earlier this month, it agreed to acquire cryptocurrency derivatives marketplace Deribit for $2.9 billion. The company previously bought a startup called Spindl that developed a blockchain-powered advertising platform.