Is Circle About to Be Snatched Up? The Drama Unfolds with Ripple & Coinbase!

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It seems that Circle, the illustrious creator of the USDC stablecoin, is quite determined to venture forth into the public domain through an IPO. However, it has been whispered in some circles (pun intended) that Circle might be having a private conversation with both Coinbase and Ripple about selling itself off—how delightfully dramatic! 😏

As the IPO process continues to unfold, yet without any formal announcement of terms or a glittering roadshow, the possibility of a cheeky acquisition before the company makes its grand public debut still lingers in the air. After all, Coinbase and Circle have long been quite chummy, having created the mighty USDC together in 2018 under the rather charmingly named Centre Consortium. Alas, that partnership officially ended in 2023, but fear not, dear reader, the business bond remains rather strong, like a stubborn love affair that refuses to die. 💔

Coinbase, not one to let go of its share of Circle, still holds a piece of the company and continues to partake in the revenue generated from the USDC reserves. The latest filing reveals that both firms share a 50/50 split of the earnings—unless, of course, the USDC is parked on Coinbase’s platform, in which case Coinbase kindly takes all the spoils. How considerate! This lovely arrangement has certainly padded Coinbase’s coffers of late. 💸

But wait, there’s more! Coinbase, in its never-ending pursuit of control, has secured the right to block any new deals Circle wishes to strike involving USDC revenue. Furthermore, should Circle ever face a financial catastrophe (knock on wood), Coinbase retains some sway over Circle’s intellectual property. One source, who was feeling rather affectionate, remarked, “I feel like they’re one company.” How quaint! 🤔

Now, one might suspect that Coinbase holds a slight advantage, seeing as it is already a public company with access to greater financial resources. Brian Armstrong, the ever-calm CEO of Coinbase, stated with typical understatement to Bloomberg on May 14, “They’re going public doesn’t change anything about our commercial relationship… nothing to announce today.” Oh, how mysterious, Brian! 😏 Meanwhile, Coinbase boasts a staggering $8 billion in cash, and with its recent inclusion in the S&P 500, the stakes are higher than ever.

And lo, the winds of change have blown with the recent success of eToro’s IPO, rekindling the embers of optimism in the market. One investor even dared to hope aloud that the positive sentiment might lend Circle the courage to make its public debut. Yet, as we all know, with interest from both Coinbase and Ripple, nothing is ever quite as simple as it appears. The plot thickens, dear reader, the plot thickens. 🧐

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2025-05-19 22:47