It’s been reported that both Ripple and Coinbase have had unofficial discussions about potentially purchasing the company that issues the stablecoin, Circle.
As an analyst, I’ve come across information suggesting that I, along with many others, view Circle as seeking a valuation of at least $5 billion in any potential sale. This perspective stems from four unnamed banking and private equity executives who have shared their insights on the matter.
The issuer of USDC, a prominent stablecoin player, has been preparing for an initial public offering (IPO). However, if a takeover happens, they may abandon these plans. Recently, the company submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for this purpose.
Circle first revealed intentions for an initial public offering (IPO) as early as 2021, by merging with Concord Acquisition Corp, a publicly listed special-purpose acquisition company (SPAC). However, these plans were subsequently canceled in December 2022.
Circle and Coinbase share a significant past, as they collaborated on the development of USD Coin (USDC) back in 2018. Together, they governed this digital asset via the Centre Consortium until 2023.
Last year, Jeremy Allaire, CEO of Circle, declared that they intended to take over the governance and operational duties of USDC entirely, with the aim of making it easier to manage their stablecoin.
As a researcher, I’d rephrase it like this: “Back when Coinbase announced its intention to acquire an equity share in Circle, their April S-1 registration statement hinted at the fact that they earn revenue from USDC reserves – a stablecoin issued by Circle. Interestingly, Coinbase transitioned into a public company in April 2021.
Circle has reportedly turned down Ripple’s proposed acquisition offer valued between $4-5 billion.
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2025-05-21 20:18