XRP: Ripple Denied Circle Acquisition Rumors Amid IPO Plans

XRP and Ripple have once again found themselves at the center of crypto speculation, as reports emerged this month suggesting a potential acquisition of stablecoin issuer Circle. However, Circle has denied any intention of selling itself to Ripple, Coinbase, or any other entity, asserting its commitment to long-term strategic goals rather than a takeover.

Over the past weeks, rumors circulated that Circle, the company behind the USDC stablecoin, had entered early discussions to be acquired by major players like Ripple or Coinbase. One report in PYMNTS detailed that Circle had explored a potential $5 billion sale—an amount that aligns with the company’s valuation goal for its upcoming IPO. In response to the speculation, Circle issued a firm denial, reassuring the public that an acquisition is not part of its near-term strategy.

“We are not engaged in any discussions to sell Circle,” a spokesperson stated, highlighting that the company remains focused on its own growth and public offering plans. This emphatic denial comes amid intensifying market chatter and increasing interest in Circle’s future, particularly from crypto giants Ripple and Coinbase.

Circle’s Renewed IPO Strategy

While Circle hasn’t provided full details regarding its long-term roadmap, it has clearly been focused on pursuing an Initial Public Offering. The company disclosed its intent to go public as early as December 2022. However, its IPO journey faced delays, prompting a major revival in early 2024.

In January 2024, Circle rebooted its IPO ambitions and began working with major investment banks to structure its listing. Despite these movements, the exact timeline for going public remains unclear as the process continues. This makes any talk of an impending sale even more unfounded, as Circle appears dedicated to reinforcing its independence and financial positioning through public markets.

Ripple vs. Coinbase: Competing Interests in Circle

The rumor mill caught fire when media outlets including Bloomberg suggested that Ripple had placed an initial offer valued between $4 billion and $5 billion, which Circle reportedly dismissed as undervalued. That sparked a competitive atmosphere, with talks indicating that Coinbase also threw its hat in the ring.

Amid these rumors, Ripple was said to have sweetened the pot and reportedly considered a package ranging from $9 billion to $11 billion, combining both cash and XRP tokens. This aggressive move was perceived as a strategy for Ripple to gain more stablecoin market presence and strengthen the XRP Ledger ecosystem.

Industry observer and angel investor Paul Barron commented that Ripple held a solid financial position that could realistically finance such an acquisition, particularly due to XRP’s growing utility and a strong balance sheet. The speculation hinted that Ripple’s offer was not only feasible but also strategically beneficial if successful.

Coinbase’s Edge via Prior Relationship

Despite Ripple’s strong showing, Coinbase may have an inside advantage. The exchange has a long-standing relationship with Circle through the establishment of the Centre Consortium in 2018, a joint initiative behind the issuance and governance of USD Coin (USDC). The partnership provided Coinbase with a minority stake in Circle and a share of USDC-related revenue generated from interest on underlying short-term securities.

Because of the business dynamics laid out in their agreement, Circle cannot move forward with any partnership that would negatively affect Coinbase’s income from USDC, without Coinbase’s approval. This clause sets the stage for Coinbase to potentially block any acquisition that would compromise its standing or profits.

Given these interconnected relationships, some believed Coinbase had better odds of acquiring Circle, should the company decide to move in that direction. Yet those hopes have now been dashed—or at least temporarily silenced—by Circle’s official declaration that it is not considering selling to either Ripple or Coinbase.

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

This development adds a new layer to the evolving narratives around Ripple and its use of XRP in strategic acquisitions. While the door isn’t permanently closed for future M&A moves, Circle appears steadfast in its independent path toward public trading—with Ripple, Coinbase, and the broader crypto market closely watching for the next chapter.