Circle, the company behind the popular stablecoin USDC, is reportedly looking for a buyer and wants at least $5 billion for the deal. This could mean they’re ditching their plans for an initial public offering (IPO).
A Bidding War?
Both Coinbase and Ripple are rumored to be interested in acquiring Circle. Fortune magazine, citing sources in banking and private equity, says Ripple already made a bid in the $4-5 billion range, but Circle turned it down.
Coinbase and Circle: A Long History
Coinbase and Circle have a close relationship, having co-created USDC in 2018. While they previously managed USDC together, Circle now handles all operations independently. Coinbase still benefits financially from USDC reserves, according to Circle’s recent filings. Coinbase went public in 2021.
IPO on Hold?
Circle had previously planned to go public, but those plans were scrapped last year. Their recent filing with the SEC indicated they were pursuing an IPO again, but a sale could change all that. The $5 billion price tag suggests Circle is aiming high, making an acquisition a potentially lucrative, but risky, move for any buyer.
