XRP Eyes Strategic Stake as Ripple Considers Circle Acquisition

XRP could soon gain even more industry prominence as Ripple reportedly engages in early talks to acquire stablecoin issuer Circle. These discussions, if successful, could significantly enhance XRP’s position within the digital payments ecosystem and reshape Ripple’s influence in the stablecoin sector.

Circle, known for its USDC stablecoin, has recently been the subject of acquisition interest as it prepares for a potential $5 billion initial public offering (IPO). However, according to insiders cited by Fortune, Circle is also exploring a possible buyout by key players in the crypto market, including Ripple and Coinbase. Although these talks are still in preliminary stages, the implications for the broader XRP ecosystem are substantial.

Founded in partnership by Circle and Coinbase under the Centre Consortium, the USDC stablecoin has grown into a foundational asset within digital finance. However, this governance structure was dissolved in 2023, granting Circle full autonomy over the stablecoin while Coinbase retained equity stakes and significant revenue-sharing arrangements. This historical alignment illustrates the interconnected nature of Circle and Coinbase’s operations.

Circle generates considerable revenue from USDC holdings, particularly when stored on Coinbase’s platform. Under their agreement, both firms split residual profits from USDC’s backing reserves. However, Coinbase receives the entirety of revenue generated directly on its exchange. Furthermore, the contract restricts Circle from pursuing independent, large-scale new partnerships involving USDC without prior consent from Coinbase — a detail that underscores Coinbase’s deep entrenchment in Circle’s strategic decisions.

A banker familiar with the ongoing negotiations remarked that should Coinbase move to acquire Circle, the deal could progress rapidly due to the companies’ intertwined operations. Still, Ripple, the company behind XRP, is not sitting idly by.

Ripple reportedly submitted an acquisition offer valued between $4 billion and $5 billion, structured partly in XRP tokens and cash. However, Circle deemed the offer insufficient and declined the proposal. Despite this minor setback, Ripple’s interest is rooted in strategic expansion following its recent acquisition of prime brokerage firm Hidden Road for $1.25 billion.

Ripple’s resources are formidable. According to its latest XRP Markets Report, the firm held 4.56 billion XRP — worth approximately $11.8 billion — on its balance sheet and controlled an additional 37.13 billion XRP (around $95.7 billion) in escrow as of March 2025. This funding power gives Ripple potential leverage to remain a serious contender should Circle entertain further acquisition offers.

By contrast, Coinbase is also well-positioned financially, holding approximately $8 billion in cash. This has enabled the publicly traded exchange to pursue multiple acquisitions throughout the current year, including the purchase of crypto derivatives platform Deribit for $2.9 billion and blockchain advertising startup Spindle.

Coinbase CEO Brian Armstrong has emphasized a measured approach to mergers and acquisitions, focusing only on deals that align strategically and are manageable from an integration standpoint. This perspective, however, has not deterred speculation that Coinbase may eventually pursue full ownership of Circle, particularly considering its long-standing relationship with the stablecoin’s ecosystem.

For Ripple, successfully acquiring Circle would not only broaden its stablecoin exposure but also create deep synergies with the XRP Ledger. Pairing USDC’s extensive reach with XRP’s global payment infrastructure could streamline cross-border payments, increasing utility and demand for XRP across traditional and decentralized financial systems alike.

As of now, Circle remains officially committed to its IPO ambitions. The company’s IPO paperwork, filed in April, targets a valuation of roughly $5 billion. However, a private equity executive close to the situation noted that Circle’s trajectory could shift rapidly, with circumstances “changing week by week.” Whether the company ultimately heads for public markets or becomes part of an acquisition could depend heavily on how discussions with Ripple and Coinbase continue to unfold.

Related: Expert Advice: Sell XRP If You’re Confused

Should Ripple re-enter negotiations and improve its offer, its large XRP reserves may provide compelling incentives — both financially and strategically — for Circle to reconsider. Given XRP’s sui generis standing as a bridge asset for international payments and Ripple’s growing list of institutional expansions, acquiring Circle could further solidify XRP’s dominance in future blockchain-financial integrations.