Ripple and Coinbase Reportedly Competing to Acquire Circle Amid IPO Plans

Ripple is reportedly in a bidding war with Coinbase to acquire fintech giant Circle, according to a recent report by Fortune. Citing anonymous sources from private equity and banking sectors, the report indicates that preliminary discussions have taken place regarding a potential acquisition.

Last month, Bloomberg revealed that Ripple had offered up to $5 billion for Circle, but the bid was rejected as insufficient. Since then, unverified social media rumors have circulated suggesting Ripple may raise its offer to $20 billion, though this remains unconfirmed.

Insiders claim Circle favors a sale to Coinbase due to their longstanding partnership. The two companies co-founded the Center Consortium in 2018 and jointly launched USD Coin (USDC), which has since become one of the leading stablecoins in the market. Fortune’s sources suggest Circle would welcome a Coinbase acquisition, though it is still actively pursuing its previously announced plans to go public.

Ripple, however, is in a strong financial position, reportedly holding more than $90 billion worth of XRP, giving it ample resources for strategic acquisitions. Bitwise President Teddy Fusaro recently commented that Ripple could potentially acquire multiple major companies using its XRP reserves.

Both Ripple and Coinbase have made headlines with recent high-profile acquisitions. Ripple recently acquired prime brokerage firm Hidden Road for $1.25 billion. Meanwhile, Coinbase secured the largest M&A deal in crypto history by agreeing to purchase crypto derivatives exchange Deribit for nearly $3 billion.

As competition intensifies in the digital asset space, Ripple and Coinbase's interest in Circle highlights the growing strategic importance of stablecoins and infrastructure within the crypto economy. Whether Circle proceeds with its IPO or agrees to a sale could shape the stablecoin sector's future trajectory.