“If Coinbase wanted to buy them, Circle would sell in a heartbeat,” the source noted. Another executive remarked that the situation is fluid, with developments occurring on a weekly basis.
Despite the ongoing talks, Circle remains committed to its IPO plans. The firm has yet to finalize the terms for the offering or launch its roadshow. Notably, both Circle and Coinbase have a history together; they co-founded the Centre Consortium in 2018, which is responsible for issuing USDC.
As part of their partnership, Coinbase acquired an equity stake in Circle when the venture concluded in 2023, while Circle took full governance of USDC.
However, Coinbase retains 100% of the revenue when USDC is held on its platform, a situation that has likely become more prevalent as Coinbase’s earnings reports indicate increased income from this partnership.
Any potential offer from Ripple would likely involve a combination of its native cryptocurrency, XRP, and cash, leveraging Ripple’s substantial balance sheet, which includes billions of dollars worth of XRP.
Featured image from DALL-E, chart from TradingView.com
