A major twist has emerged in the cryptocurrency world, where Ripple’s $20 billion acquisition offer could be in jeopardy after Coinbase took a stake in Circle. This development could affect the balance of power in the crypto industry, especially in terms of the operation and control of the stablecoin USDC.
Table of Contents
- Circle’s IPO and Valuation
- Coinbase’s Strategic Stake in Circle
- Ripple’s Takeover Bid
- Potential Impact of Coinbase’s Stake
- Industry and Regulatory Context
- Conclusion
Circle's IPO and valuation
Circle has filed an S-1 registration with the US Securities and Exchange Commission (SEC) on April 1, 2025, with plans to list on the New York Stock Exchange (NYSE) under the ticker “CRCL”. JPMorgan Chase and Citigroup are the lead underwriters of this IPO, and it is expected to launch this summer.
Coinbase's stake in Circle
Coinbase recently took an equity stake in Circle, further strengthening the strategic and economic ties between the two companies. Under the move, full responsibility for USDC’s operations and governance has been handed over to Circle, and a revenue sharing arrangement has also been made between the two companies.
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Ripple’s takeover proposal
Ripple had previously made an acquisition offer of between $4 and $5 billion to Circle, which Circle rejected. Now, according to new reports, Ripple has increased the offer to $20 billion, although this has not been officially confirmed.
Potential impact
Coinbase’s stake in Circle and Circle’s upcoming IPO could complicate Ripple’s takeover proposal. Additionally, regulatory clarity in the crypto industry and growing acceptance for stablecoins could provide opportunities for Circle to move independently.
Conclusion
The growing relationship between Coinbase and Circle, and Circle’s plans to go public, could redefine the balance of power in the crypto industry. For Ripple, it may be time for a strategic rethink, while Circle and Coinbase work together to make USDC even stronger globally.
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