Why Ripple Is Competing with Coinbase to Acquire Circle

The cryptocurrency world is buzzing as two major players—Ripple and Coinbase—are reportedly in talks to acquire Circle, the company behind the USD Coin (USDC) stablecoin. 

While Circle has been preparing to go public, sources suggest informal acquisition discussions have occurred behind the scenes, with both Ripple and Coinbase emerging as potential suitors. 

This raises several questions: Why are these giants interested in Circle, and what does it mean for the future of the stablecoin market?

What’s Circle, and Why Does It Matter?

Circle is a prominent fintech firm best known for co-developing the USDC stablecoin—currently the second-largest stablecoin by market capitalization, behind Tether (USDT). USDC is a fully-reserved digital dollar pegged 1:1 to the U.S. dollar and widely used across crypto exchanges, DeFi platforms, and payment processors. 

According to CoinGecko, USDC has a market cap exceeding $32 billion as of May 2025.

Originally, USDC was launched in 2018 by Circle in collaboration with Coinbase under a joint venture known as the Centre Consortium. 

Though this partnership was formally dissolved in 2023, Coinbase retained equity in Circle and still benefits from USDC’s performance. This ongoing financial relationship could explain Coinbase’s strategic interest in acquiring Circle outright.

Also read: RLUSD vs. the Giants: How It Stacks Up Against USDT, USDC, and PayPal

Ripple’s Bold Play on Circle Acquisition

On the other side, Ripple—the blockchain firm behind the XRP cryptocurrency—is reportedly looking to expand its ecosystem through acquisitions. According to multiple reports, Ripple made an offer of around $4–$5 billion to acquire Circle, which was declined for being too low. 

Some unconfirmed chatter on social media suggested Ripple might be considering a $20 billion bid, although these claims haven’t been substantiated.

What makes Ripple a serious contender is its robust financial position. 

With XRP holdings valued at over $90 billion at current market rates, Ripple has substantial leverage. 

As Bitwise’s President Teddy Fusaro noted, Ripple has the financial muscle to acquire numerous fintech companies without needing external funding.

Ripple has already demonstrated its ambition through recent acquisitions, including its $1.25 billion purchase of prime brokerage firm Hidden Road. 

Acquiring Circle would solidify Ripple’s influence in the stablecoin and payment infrastructure markets, areas where it has been actively expanding.

Also read: Comparing USDT and USDC: Which One Has More Liquidity?

Coinbase’s Edge on Circle Ties

While Ripple has financial strength, Coinbase brings something equally powerful: strategic alignment and regulatory positioning. As a publicly listed company soon joining the S&P 500, Coinbase enjoys access to broader capital markets and institutional investors. 

With over $8 billion in cash reserves as of March 2025, it also has the liquidity to pursue large acquisitions.

More importantly, Coinbase’s existing ties to Circle could give it an inside edge. The two firms still share revenues generated from USDC reserves, unless the funds are stored on Coinbase’s platform—where Coinbase keeps 100% of the revenue. 

Additionally, Coinbase reportedly holds rights that allow it to block certain Circle deals related to USDC and even control some of Circle’s intellectual property in the event of bankruptcy. 

These contractual nuances could complicate any attempt by a third party, like Ripple, to acquire Circle.

A Fortune report even cited a source claiming, “If Coinbase wanted to buy them, Circle would sell in a heartbeat.” 

Whether that’s speculation or not, it’s clear Coinbase is well-positioned if it decides to make a move.

Also read: How to Buy USD Coin (USDC)
 

Circle’s IPO Plans in the Balance

Meanwhile, Circle filed for an initial public offering (IPO) in early April 2025, targeting a valuation of around $5 billion. While the company hasn't announced the terms or launched its investor roadshow yet, market conditions are shifting. 

The successful IPO of eToro earlier this year has reignited optimism in the crypto equities market, potentially encouraging Circle to proceed independently.

However, with active interest from both Coinbase and Ripple, a sale could disrupt the IPO timeline. 

As investors await final decisions, the crypto space is watching closely to see whether Circle remains independent or becomes part of a larger ecosystem.

Also read: Is USDC Beating USDT in the Stablecoin Race? Looking at Recent Findings

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What’s at Stake for Ripple and Circle?

This competition underscores the growing importance of stablecoins in the digital asset economy. Whoever controls Circle—and by extension, USDC—gains considerable influence over global crypto liquidity, cross-border payments, and DeFi infrastructure. 

A Ripple acquisition could accelerate its goal of building a global financial network powered by XRP and stablecoin settlements. On the other hand, a Coinbase takeover would further centralize the USDC ecosystem under an already dominant U.S.-based exchange.

As of now, neither company has officially confirmed their intentions, and Circle continues to prepare for its IPO. Still, the coming months could bring a major shakeup in the crypto industry depending on how this plays out.

FAQs

1. What is USDC and how is it different from other stablecoins?

USDC (USD Coin) is a fully backed stablecoin pegged 1:1 to the U.S. dollar. Unlike some stablecoins, USDC is audited monthly and managed under strict compliance standards, making it a preferred option for regulated financial activity.

2. Why would Ripple want to acquire Circle?

Ripple is aiming to expand its global payment infrastructure. Acquiring Circle, the issuer of USDC, would give Ripple access to a well-established stablecoin and strengthen its presence in the DeFi and remittance sectors.

3. What’s the relationship between Coinbase and Circle?

Coinbase and Circle co-founded the Centre Consortium and launched USDC together in 2018. Although the partnership ended in 2023, they continue to share revenue from USDC and maintain strong business ties.

4. Is Circle still planning to go public?

Yes, Circle has filed for an IPO aiming for a $5 billion valuation. However, acquisition talks with Ripple and Coinbase could potentially change that trajectory, depending on how negotiations unfold.