World Crypto Global
- Written by: Jared Kirui
- Mon, 19 May 2025
- Israel
As stablecoins gain adoption in the global financialsystem, 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 atleast $5 billion.Circle, the company behind USDC, is now caught in a crucialmoment, publicly pursuing an IPO while quietly exploring a potential sale totwo 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 informalsale discussions with both Coinbase and Ripple, which could upend its publiclisting. 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 Cointelegraph (@Cointelegraph) April 1, 2025Behind the IPO CurtainThough Circle remains committed to going public, ithasnt yet launched its IPO roadshow or finalized terms. The lack of momentumleaves room for other outcomes. Coinbase received an equity stake in Circle, and bothcompanies still share revenue from USDCs reserves. Crucially, Coinbase earnsall of the reserve revenue when USDC is held on its platform, an increasinglyfrequent occurrence, judging by its earnings reports.Read more: OANDA Japan Deletes Inactive Accounts With Zero Balances, Cites Trading TermsAccording to Circles S-1 filing, the currentagreement grants Coinbase far more than just revenue. Circle needs Coinbasesconsent to forge major new partnerships for USDC. Coinbase also has partialrights to Circles intellectual property if Circle becomes insolvent.These terms make Coinbase not just a partner, but anatural acquirer. With $8 billion in cash and a $56 billion market cap, thepublicly 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 BidRipple is also in the mix, having reportedly offered $45 billion to acquire Circle. That offer was rejected as too low, but Ripplehas the resources to try again. It holds roughly $11.8 billion worth of XRP andnearly $96 billion more in escrow. Any new bid would likely combine XRP andcash. Circle Rejected Ripple Takeover Bid of $4-5B https://t.co/6VPRVN5hZx pic.twitter.com/mP3Ff6EEKU matthew sigel, recovering CFA (@matthew_sigel) April 30, 2025Stablecoins like USDC are increasingly seen as thedigital twin of the U.S. dollar. Control over Circle could mean influence overa core component of tomorrows financial infrastructure.Circles IPO ambitions remain intact for now. The recent success of eToros debut, with its shares jumping 29% on the first day, may encourage Circle to follow through. However, sources close to the matter suggest that anacquisition remains a very real possibility.This article was written by Jared Kirui at www.financemagnates.com.
