XRP-Backed Ripple Eyes Circle Purchase Amid IPO Talks

Ripple, the blockchain company closely tied to the cryptocurrency XRP, is reportedly holding informal discussions to purchase stablecoin issuer Circle, which is currently preparing for an initial public offering (IPO). These conversations suggest Ripple may be exploring strategic expansion as Circle looks to go public with a valuation goal of at least $5 billion.

According to recent reports, Circle—the company behind the USDC stablecoin—is continuing its efforts to launch an IPO. However, it is also exploring acquisition options. Notably, Ripple is said to have made a bid of $4 billion to $5 billion on April 30, although that offer was declined for not meeting Circle’s valuation expectations.

If a deal moves forward, Ripple may use a combination of cash and its native digital asset, XRP, to finance the purchase. Coinbase has also emerged as a potential acquirer. Should Coinbase make a move, its proposal would likely involve a mix of cash and stock in comparison to Ripple’s crypto-based offer.

Ripple’s interest in Circle comes at a time when market conditions are becoming more favorable for public offerings. After a string of setbacks due to economic headwinds, companies like Circle are once again aiming to go public. In fact, Circle filed its IPO registration on April 1, aiming to complete the move by the end of the month. However, a few days later, the company signaled a possible delay, citing market volatility and broader financial uncertainty as reasons for a more measured approach.

Coinbase and Circle have been aligned for several years, having jointly initiated the Centre Consortium back in 2018. This project aimed to create a regulatory framework for fiat-backed stablecoins, including the very USDC that Circle now anchors. Additionally, Coinbase already supports USDC on its platform, further underscoring its vested interest in Circle’s trajectory.

The broader landscape is also tilting toward crypto firms considering IPOs. Analysts predicted that 2025 would be a breakout year for digital asset companies entering the public market. Their projections are gaining traction as firms like Gemini and Kraken are reportedly revisiting IPO plans. This momentum can be attributed, in part, to a more favorable regulatory climate brought on by reduced trade tensions and a more accommodative stance from U.S. authorities.

Previously, the Trump administration’s tariff regimes had introduced uncertainty into the global markets, temporarily stalling IPO ambitions across sectors. With many of those trade policies now paused or reassessed, investor sentiment appears to be rising. For example, eToro recently completed a highly successful IPO, with shares jumping 29% on their debut.

Meanwhile, XRP and other major cryptocurrencies have seen significant market gains in recent weeks. Bitcoin is closing in on its record-high levels, and Ether, Solana, and XRP have mirrored this upward momentum. The equity markets have followed suit, with the S&P 500 index rising over 15% in the past month. This resurgence reinforces the belief that now may be an opportune time for Circle’s listing—or its sale, should a suitable offer come through.

Despite the competition Ripple might face from Coinbase in acquiring Circle, the implications for XRP itself could be profound. Should Ripple complete the transaction using XRP as part of the purchase mechanism, it would further solidify the cryptocurrency’s utility in real-world financial transactions and cement Ripple’s role in stablecoin infrastructure.

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

As Circle navigates its next move—choosing between a public listing or a strategic acquisition—Ripple’s potential involvement highlights both growing investor confidence in blockchain companies and an accelerating push toward mainstream adoption of crypto assets like XRP. The coming months may prove transformative not just for Circle, but for the broader financial ecosystem that underpins it.