Behind Circle’s Public Listing Push Lies Private Bidding War With Crypto Giants: Report

As stablecoins gain adoption in the global financial system, a high-stakes power play is emerging behind the scenes. In early April, Circle filed paperwork to go public in the U.S., aiming for a valuation of at least $5 billion.

Circle, the company behind USDC, is now caught in a crucial moment, publicly pursuing an IPO while quietly exploring a potential sale to two crypto heavyweights: Coinbase and Ripple, Fortune reported.

However, that IPO plan may never make it to Wall Street. Four executives in banking and private equity say Circle has been in informal sale discussions with both Coinbase and Ripple, which could upend its public listing.

🚨 BREAKING: Circle has filed for an IPO, planning to list its Class A common stock on the NYSE under the symbol ‘CRCL’. pic.twitter.com/ugM1P1mL1c

Behind the IPO Curtain

Though Circle remains committed to going public, it hasn’t yet launched its IPO roadshow or finalized terms. The lack of momentum leaves room for other outcomes.

Coinbase received an equity stake in Circle, and both companies still share revenue from USDC’s reserves. Crucially, Coinbase earns all of the reserve revenue when USDC is held on its platform, an increasingly frequent occurrence, judging by its earnings reports.

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According to Circle’s S-1 filing, the current agreement grants Coinbase far more than just revenue. Circle needs Coinbase’s consent to forge major new partnerships for USDC. Coinbase also has partial rights to Circle’s intellectual property if Circle becomes insolvent.

These terms make Coinbase not just a partner, but a natural acquirer. With $8 billion in cash and a $56 billion market cap, the publicly traded exchange has the financial firepower to close a deal swiftly. Its recent addition to the S&P 500 has only added momentum.

Ripple Makes Its Bid

Ripple is also in the mix, having reportedly offered $4–5 billion to acquire Circle. That offer was rejected as too low, but Ripple has the resources to try again. It holds roughly $11.8 billion worth of XRP and nearly $96 billion more in escrow. Any new bid would likely combine XRP and cash.

🚨 Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU

Stablecoins like USDC are increasingly seen as the digital twin of the U.S. dollar. Control over Circle could mean influence over a core component of tomorrow’s financial infrastructure.

Circle’s IPO ambitions remain intact for now. The recent success of eToro’s debut, with its shares jumping 29% on the first day, may encourage Circle to follow through. However, sources close to the matter suggest that an acquisition remains a very real possibility.