Maria Vaughan
- Coinbase and Ripple are reported to have stepped up their game to acquire stablecoin issuer Circle as part of their merger and acquisition plans.
- Four unidentified banking and private equity executives have also disclosed that Circle would “sell in a heartbeat if Coinbase decides to buy.”
In a recent update, CNF discussed Ripple Labs’ decision to acquire stablecoin issuer Circle. According to that report, a bid of $4 to $5 billion was rejected as it was considered too low. Despite these early negotiations, Fortune has disclosed that Circle’s latest comment on the matter shows it is not desperate to sell.
Circle is not for sale. Our long-term goals remain the same.
Amidst the backdrop of this, the stablecoin issuer has filed for the necessary paperwork to facilitate the launch of its much-anticipated Initial Public Offering (IPO). According to experts, the chance of approval is very low as the company has already held talks with Coinbase Global and Ripple. As highlighted by Fortune, this information was leaked by four unidentified banking and private equity executives.
Despite its not-for-sale status, these individuals believe that the company is willing to offer itself for at least $5 billion.
One of the sources was reported to have said, “If Coinbase wanted to buy them, Circle would sell in a heartbeat.” Another executive allegedly added: “Things change week by week.”
Explaining the reasons behind Ripple’s decision, an X page known as “All Things XRP” recently disclosed that the blockchain company is seeking to dominate payment, own stablecoin rails, and make XRP a default bridge. As indicated in our previous news brief, the Circle acquisition falls within step two of this plan.
Meanwhile, Fortune believes that any bid by Ripple would likely be XRP and cash. According to its first quarter of the year (Q1 2025) report, the company has 4.56 billion XRP ($11.77 billion) on its balance sheet and 37.13 billion XRP ($95.7 billion) in escrow.
Coinbase, on the other hand, could make a bid in cash and stock. According to the report, as of March 31, it had $8 billion in cash on its balance sheet. Fascinatingly, Coinbase CEO Brian Armstrong hinted in a recent interview that Circle’s recent move to go public does not change anything.
They’re going public doesn’t change anything about our commercial relationship, but in terms of other deals we might consider in the future, I mean, that, of course, would be up to them and us, but, you know, nothing to announce today.
Additionally, Armstrong disclosed that Coinbase is always looking for merger and acquisition opportunities. Recently, it made a $2.9 billion deal with derivative platform Deribit. As mentioned in our earlier post, this deal consists of $700 million in cash and the rest in Coinbase shares.
Ripple, which has similar plans, also acquired prime brokerage Hidden Road for $1.25 billion, as noted in our previous blog post. As also explored earlier, XRP Ledger would be used to power Hidden Road’s infrastructure.
