Is the IPO dark horse still an acquisition target? Circle reportedly seeks to sell for $5 billion, with Coinbase and Ripple interested in taking over.

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As competition in the stablecoin market heats up, USDC issuer Circle is pursuing two routes simultaneously: "on one hand, submitting a listing application, and on the other hand, also keeping the door open for potential acquisitions." Fortune reported that the company is seeking at least $5 billion in a sale, with targets including Coinbase and Ripple.

Dual-track approach: Circle is simultaneously pursuing an IPO and merger negotiations.

Reports indicate that Circle submitted its initial public offering prospectus to the U.S. Securities and Exchange Commission (SEC) in April. However, at the same time, the company also expressed goodwill to potential acquirers. Ripple had previously proposed to acquire Circle for a price between 4 billion and 5 billion USD in April, but was politely rejected by the other party on the grounds that the price was too low.

( Circle promotes high yield USDC with Binance and Coinbase, Ripple seeks to acquire for 5 billion USD but is rejected )

It is worth noting that this is not the first time Circle has considered capital market options. As early as 2021, the company announced plans to go public through a SPAC merger, but the plan was aborted at the end of 2022 due to the winter in the cryptocurrency market. It was only in January of last year that they revived their efforts and submitted documents, with an estimated valuation of up to 9 billion USD.

Coinbase: From Partner to Potential Buyer?

Coinbase, as a long-term partner of Circle, is one of the co-founders of the CENTRE alliance at the early establishment of USDC. This stablecoin is also the largest traded stablecoin on the Coinbase platform. According to data, Circle has paid about 900 million USD to Coinbase as distribution costs in 2024 alone.

(Circle listed on Coinbase has been very profitable, earning reserve income every year, with the potential for a fivefold return on shareholding )

Nowadays, Coinbase is also actively seeking expansion, with recent news of expressing acquisition intentions towards the derivatives exchange Deribit and the privacy protocol platform IronFish. If it successfully incorporates Circle, it will strengthen its dominant position in the stablecoin market.

At the same time, the company became the first cryptocurrency company to join the S&P 500 index, attracting significant market attention for its capital strength.

Ripple intensifies the competition in the stablecoin landscape

Another potential buyer, Ripple, is also accelerating its布局 in the stablecoin space. In addition to proposing the acquisition of Circle, Ripple officially launched a stablecoin named RLUSD last year and chose to list it on the Kraken exchange, integrating it with its payment platform, indicating Ripple's intention to challenge the dominance of USDC and USDT in payment applications.

(Ripple invested $1.25 billion to acquire Hidden Road, becoming the world's largest non-bank brokerage )

The legislation of stablecoins is driving market reshaping, where is Circle heading?

It is worth noting that the political situation in the United States adds variables to the development of stablecoins. The pro-crypto stance of President Trump upon his return to the political scene will also accelerate the listing or acquisition process to seize market dividends after regulations become clear.

( The U.S. stablecoin bill "GENIUS Act" has been passed! Legislation to be completed by 5/26, Democrat Warren remains silent )

Well-known crypto companies such as Kraken and BitGo have also released signals for going public, and Circle's final choice will become the focus of everyone's attention.

From the failed SPAC of 2022 to today's dual-track layout, Circle has demonstrated strong strategic flexibility and market value. Regardless of which party is ultimately chosen for collaboration, or whether to continue pushing for an IPO, this deal, which could reach up to 5 billion USD, will impact the entire market landscape of stablecoins and crypto payments.

Is this article about an IPO dark horse or a target for acquisition? Circle is reported to be seeking $5 billion for sale, with Coinbase and Ripple interested in taking over. First appeared in Chain News ABMedia.

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