Stablecoin giant Circle is still in informal talks with Ripple Labs and Coinbase Exchange amid the ongoing push for a US IPO.
Crypto merger and acquisition (M&A) activity is taking a new shape in the digital currency ecosystem, with talks still ongoing to acquire USDC issuer Circle.
Despite its planned initial public offering (IPO) push, the company is still in acquisition talks with Ripple Labs and Coinbase Global Inc, according to a new Fortune report.
Circle steel for sale, coinbase named favorite.
The circular, which filed for an IPO in early April, marks a significant milestone for the company, which has been exploring ways to go public since at least 2022.
Despite its personal growth push, the company remains a target for other big firms in the crypto ecosystem.
The Fortune report put Circle’s IPO target at $5 billion. According to the publication, citing sources close to the matter, informal discussions between USDC's parent company and Ripple Labs are ongoing.
While the blockchain payments firm’s affiliation is nothing new, Fortune’s sources have also linked Coinbase to the ongoing informational discussions.
It is not known whether a final deal will be recorded. However, sources noted that Circle would sell without serious consideration if a good offer came in from Coinbase. Informal talks are ongoing and could change in the near future.
Other sources have named Coinbase exchange as the preferred firm to buy the USDC parent firm. While there are no reports of other firms in the running, the report indicated that no timeline is in sight.
Will Ripple Labs Raise Its Bid?
The new update about Circle and ongoing talks is not new as Ripple has previously bid. Valued at around $4 billion to $5 billion, this initial bid was reportedly rejected by Circle. The rejection came on the basis that it did not match its market value.
While there were rumors that the blockchain payments firm would make another bid, there has been no official confirmation.
A Fortune report highlighted Ripple Labs’ 100 billion XRP reserve as a major advantage in the firm’s race.
Ripple Labs’ exact goal for the stablecoin issuer is unknown, considering that it also has its own RLUSD token. With a new report linking the Brad Garlinghouse-led firm to USDC's parent company, there are more possibilities on the horizon.
Cash Reserves to Make a Difference
It’s worth noting that both Coinbase Exchange and Ripple Labs have made strategic acquisitions this year. Coinbase acquired Derebit for $2.9 billion to expand its broader market presence.
Ripple Labs also committed $1.25 billion to acquire Secret Road, adding to the high-profile deals in the crypto M&A scene.
Whether Coinbase or Ripple is worth acquiring Circle depends on additional cash flow in subsequent quarters.