Circle Exploring Potential $5 Billion Sale To Ripple Or Coinbase Despite IPO Plans ⋆ ZyCrypto
The post Circle Exploring Potential $5 Billion Sale To Ripple Or Coinbase Despite IPO Plans ⋆ ZyCrypto appeared on BitcoinEthereumNews.com.
Advertisement Stablecoin giant Circle is reportedly mulling a possible sale at a valuation of at least $5 billion. The alleged discussions involving America’s leading crypto exchange, Coinbase, and blockchain payments firm Ripple are taking place while Circle plans an initial public offering (IPO). Circle Seeking A Sale Price Of At Least $5 Billion Circle, the issuer of the USDC dollar-pegged stablecoin, took part in informal takeover talks from which it was seeking at least $5 billion from potential buyers, according to a Monday report from Fortune, citing four banking and private equity sources familiar with the matter. As reported by ZyCrypto last month, Ripple had offered to acquire Circle for up to $5 billion, but the offer was rejected as too low. At the time, sources claimed that Ripple remained interested in Circle, but hadn’t decided on whether to make another offer. Ripple’s proposed deal likely included a huge portion of the payment in the XRP cryptocurrency. While nominally valued at market rates, XRP-based payments may be significantly discounted by a potential seller like Circle, which is seeking a public listing. USDC is currently the second-largest stablecoin by market cap at $60.6 billion, trailing only Tether’s USDT at $151.6 billion. Since launching last December, Ripple’s RLUSD stablecoin market cap has climbed to over $312 million, according to data from CoinGecko. Advertisement Will Coinbase Outbid Ripple? Meanwhile, if Coinbase were to buy Circle, it would pay using cash and stock. Even if Ripple were to match the requested price, Circle might still sell to Coinbase, given their long-lasting partnership since the launch of the CENTRE Consortium in 2018, which initially managed USDC. Circle also has an agreement with Coinbase to list USDC on its trading platform, and the two companies share revenue from the stablecoin’s reserve interest income. …
