The quest to acquire Circle has intensified, as Coinbase and Ripple engage in a bidding war to acquire the leading stablecoin issuer.
Popular business magazine Fortune, citing four sources familiar with the matter, reports that Circle is currently having informal discussions to be sold to either Ripple or Coinbase.
This latest development follows a Bloomberg report indicating that Ripple offered to buy Circle for $4 billion to $5 billion. However, the USDC stablecoin issuer rejected the offer as “too low.”
According to private equity and banking sources, Circle is seeking a minimum offer of $5 billion–the same amount it aims to be valued at if it goes public through an IPO as intended.
Coinbase’s Advantage
The Fortune report portrays Coinbase as having an advantage over Ripple. One source claimed that Circle might sell itself to Coinbase if the San Francisco-based exchange decides to acquire it.
This reasoning stems from the relationship between Coinbase and Circle, which led to the launch of the Centre Consortium crypto project in 2018. This project aimed to drive the global adoption of payments stablecoins through USDC.
Following the conclusion of the venture’s terms in 2023, Coinbase acquired a minority stake in Circle. On the other hand, Circle took over control of the stablecoin’s governance.
Despite this arrangement, Coinbase and Circle have been sharing revenue from the cash and short-term securities backing USDC.
Also, Coinbase has a current agreement with Circle that prohibits the latter from forming any partnership that would negatively affect the exchange’s revenue on USDC. According to the agreement, Circle can only enter into such partnerships with Coinbase’s consent.
Given Coinbase’s close ties with Circle, two sources believe the exchange is well-positioned to acquire Circle if it decides to do so.
Ripple Aims to Outbid Coinbase Using XRP and Cash
While the acquisition favors Coinbase in multiple ways, one source hinted that Ripple could have a chance to acquire Circle, emphasizing that “things change every week.”
As previously reported, Ripple first indicated an interest in acquiring Circle by offering around $5 billion, which was rejected as insufficient. With Ripple poised to acquire Circle, Fortune suggests that the payments company might offer some of its XRP holdings alongside cash in subsequent bids.
According to Ripple’s Q1 2025 Markets Report, the company had 4,562,433,147 (4.56 billion) XRP worth $10.72 billion in its blockchain addresses. It also held another 37,130,000,005 (37.13 billion) XRP valued at $87.25 billion in escrow.
Angel investor Paul Barron suggested that Ripple has the upper hand over Coinbase in the bid for Circle. He claims that Ripple has raised its offer to around $9 billion to $11 billion in hopes of outbidding Coinbase.
BREAKING: @Ripple and @coinbase now in bidding war for @circle – Sources say @ripple has the upper hand at a 9-11 Billion price tag. #XRP #USDC #CRYPTO
Who do you think wins this bidding war?
— PaulBarron (@paulbarron) May 19, 2025
Meanwhile, Coinbase could acquire Circle using its stock and cash. The exchange disclosed a cash holding of $8 billion in Q1 2025. As a public company, it could also raise more funds from investors to complete the deal.
While Ripple and Coinbase did not explicitly confirm their bid for Circle, the stablecoin issuer denied being available for sale. Circle revealed that it is focused on its long-term goals, which also include going public through an IPO.
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