Rumors are swirling that Coinbase may be eyeing a major acquisition—this time, stablecoin giant Circle—as the latter moves forward with its IPO ambitions.
Could Coinbase Buying Circle Reshape the Future of USDC?
According to Fortune, Circle, the company behind the $32 billion USDC stablecoin, is reportedly engaged in acquisition discussions with Coinbase. This comes just weeks after Circle filed for an initial public offering (IPO) in April and months after it turned down a $5 billion offer from Ripple.
Coinbase, which recently closed its $2.9 billion acquisition of crypto derivatives platform Deribit, remains flush with cash, boasting over $8 billion in liquid reserves. One source familiar with the talks told Fortune, “If Coinbase wanted to buy them, Circle would sell in a heartbeat.”
A deal between the two wouldn’t be completely unexpected. Coinbase already holds an equity stake in Circle, and both firms share revenues generated from USDC under an existing partnership. Notably, Coinbase’s Q1 revenue from “subscriptions and services” hit $698 million—much of it fueled by USDC-related activity.
Coinbase President and COO Emilie Choi emphasized the company’s M&A appetite during the Q1 earnings call in May, stating, “I believe we’ve been the most active player in crypto M&A historically, period.”
Though Circle publicly maintains it’s “not for sale,” insiders suggest conversations are ongoing. Whether Circle ultimately follows through with its IPO or opts for a strategic acquisition is still up in the air—but if a buyer emerges, signs point strongly to Coinbase.
When asked by Bloomberg about the speculation, Coinbase CEO Brian Armstrong downplayed any immediate impact: “Their going public doesn’t change anything about our commercial relationship… But in terms of other deals we might consider in the future, I mean, that, of course, would be up to them and us.”
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