Could Circle Spark Crypto Wars via Coinbase or Ripple Buyout?

Circle Considers Sale Amid IPO Plans

Circle Internet Financial,the company behind USDC,is reportedly exploring acquisition options,with Coinbase as the top contender,as per Fortune. The stablecoin issuer is still committed to its IPO but is also open to a buyout.

Circle aims for a $5 billion valuation, whether through an IPO or acquisition. Coinbase is seen as the most probable buyer. A banker noted,”If Coinbase wanted to buy circle,Circle would sell instantly.”

Both Circle and coinbase co-founded the center Consortium in 2018. Thay jointly issue USDC and share reserve interest revenue. This partnership gives Coinbase a significant edge. The crypto giant enjoys favorable terms, including full revenue from USDC held on its platform.It also influences Circle’s partnerships and intellectual property.

Circle’s IPO plans are ongoing, but no specific terms or roadshows have been announced. The two firms have a strong history. They also share revenue from reserve interest.

Circle’s IPO plans are ongoing, but no specific terms or roadshows have been announced. The two firms have a strong history. This partnership gives Coinbase a significant edge. The crypto giant enjoys favorable terms, including full revenue from USDC held on its platform.it also influences Circle’s partnerships and intellectual property.

Circle is reportedly seeking a $5 billion valuation — either through public markets or acquisition, according to Fortune.  Coinbase is the likely buyer “if Coinbase wanted to buy them, Circle would sell in a heartbeat,” one banker said. While IPO plans remain intact, no terms or roadshow have been announced. Coinbase might potentially be the likeliest buyer. The two companies co-founded Centre Consortium in 2018 to issue USDC and still share revenue from reserve interest.  Coinbase has favorable terms, including a 100% share of revenue from USDC held on its platform. It also holds influence over Circle’s partnership decisions and intellectual property rights. Ripple has also shown interest, reportedly making an offer between $4 billion and $5 billion, though that bid was rejected.  Ripple could leverage its large XRP reserves—worth more then $100 billion when including tokens in escrow—to fund a deal.  But coinbase, with $8 billion in cash and the ability to raise capital through public markets, remains a stronger financial contender. Coinbase CEO Brian Armstrong said on May 14 that Circle’s IPO doesn’t affect their commercial ties but hinted at openness to future deals,according to Fortune.  Coinbase has ramped up M&A activity this year with acquisitions like Deribit and Spindle. Circle’s IPO hopes may be buoyed by eToro’s recent strong debut, but the possibility of a strategic sale remains in play.