Circle Eyes IPO or $5B USDC Sale to Ripple, Coinbase

Circle Internet Financial, issuer of USDC—the second-largest stablecoin with a $61.7 billion market cap—is eyeing a $5 billion IPO or sale to Ripple or Coinbase in 2025, per Fortune. As USDC commands 26% of the $216 billion stablecoin market, Circle’s April 1 IPO filing and acquisition talks signal a pivotal moment, per CoinGecko.

Acquisition Talks with Ripple and Coinbase

According to Fortune, Circle is in discussions with both Ripple, known for XRP and the recently launched RLUSD stablecoin, and Coinbase, the largest U.S. crypto exchange, as potential acquirers. Ripple reportedly offered $4 billion to $5 billion on April 30, 2025, which Circle rejected as insufficient. Ripple’s interest aligns with its strategy to bolster its stablecoin presence, following its $1.25 billion acquisition of crypto prime broker Hidden Road in April 2025. Acquiring USDC, which dwarfs RLUSD’s $313 million market cap, would enhance Ripple’s influence in digital payments. However, Ripple’s proposed payment structure, mixing cash and XRP, introduces risks due to XRP’s price volatility, potentially complicating negotiations.

Coinbase, meanwhile, leverages its longstanding partnership with Circle, dating back to the 2018 Centre Consortium, which set stablecoin standards. As disclosed in Circle’s IPO filing, Coinbase holds a minority stake in Circle and earns approximately 50% of USDC’s reserve revenue, though Circle paid $209.9 million in 2023 to exit the Consortium while maintaining the revenue-sharing agreement. Coinbase’s acquisition approach would likely involve cash and stock, consistent with its recent purchases of Deribit and IronFish. However, Coinbase’s ability to fund a $5 billion deal may be constrained by a cyberattack disclosed in May 2025, with estimated remediation costs ranging from $180 million to $400 million.

IPO Plans Bolstered by Regulatory Clarity

Circle filed its IPO on April 1, 2025, with JPMorgan Chase and Citigroup as underwriters, aiming for a NYSE listing under the ticker “CRCL” by the end of April. However, on April 4, Circle indicated it might delay the IPO due to macroeconomic uncertainties, particularly concerns over trade disruptions from the Trump administration’s tariff policies. As these tariff policies have since moderated, reducing economic uncertainty, Circle has reaffirmed its commitment to the IPO, targeting a summer 2025 listing. In 2024, Circle reported $1.66 billion in revenue but only $156 million in profit, largely due to high distribution costs, including payments to Coinbase. Partnerships with BlackRock for reserve management and BNY for custody bolster its institutional appeal.

The U.S. Senate’s advancement of the GENIUS Act, with a 66-32 cloture vote on May 19, 2025, further supports Circle’s IPO. If passed, the GENIUS Act will establish clear licensing and regulatory requirements for stablecoin issuers, reducing compliance risks that have historically deterred investors. Circle’s focus on transparency and compliance aligns with these standards, enhancing investor confidence in its IPO. Senator Cynthia Lummis, a co-sponsor, previously expressed hope that the GENIUS Act would pass by May 26. With optimism about reduced regulatory risks, GENIUS Act clarity could also drive Circle’s IPO valuation higher.

Stablecoin Market Growth

The stablecoin market, led by Tether’s USDT and Circle’s USDC, is set for substantial growth. A Citibank report projects the market could reach $1.6 trillion to $3.7 trillion by 2030, driven by adoption in DeFi and cross-border transactions. USDC’s $60.6 billion market cap highlights its dominance, while the GENIUS Act’s potential passage could accelerate this growth by providing a stable regulatory framework, particularly benefiting compliant issuers like Circle. As one of the leading players in the stablecoin market, Circle’s IPO or potential acquisition will significantly impact the competitive landscape of the stablecoin sector. The market is closely watching its next moves.