Circle, the company behind the popular USDC stablecoin, is once again making headlines—this time due to speculation that Coinbase may be eyeing an acquisition. In April, Circle filed regulatory paperwork signaling its intent to go public, and not long after, reports emerged that Ripple had made a takeover offer worth up to $5 billion—an offer Circle ultimately declined.
Now, Coinbase is rumored to be the next potential suitor. Fresh off its $2.9 billion purchase of Deribit, the leading crypto derivatives platform, the U.S.-based exchange still holds over $8 billion in cash and cash equivalents, giving it the firepower for another major deal. According to sources cited by Fortune, a sale to Coinbase would likely be welcomed by Circle under the right conditions.
Given their existing relationship, such a move wouldn’t come as a shock. Coinbase already holds an equity stake in Circle and shares revenue from USDC operations through a 50-50 partnership. Notably, USDC was a major contributor to Coinbase’s Q1 2025 subscription and services revenue, which totaled \$698 million.
Coinbase Flexes M&A Strength as Circle Deal Speculation Builds
Coinbase continues to highlight its aggressive mergers and acquisitions strategy, positioning itself as a dominant force in the crypto deal-making space. “I believe we’ve been the most active player in crypto M\&A historically, period,” said President and COO Emilie Choi during the company’s Q1 2025 earnings call in early May.
While Circle has publicly maintained that it is “not for sale,” behind-the-scenes discussions appear to have taken place. Whether the stablecoin issuer proceeds with its IPO or is acquired beforehand remains uncertain—but if a deal materializes, Coinbase is widely seen as the frontrunner.
Commenting on the situation, Coinbase CEO Brian Armstrong told Bloomberg that Circle’s public listing plans wouldn’t affect their existing partnership. “Their going public doesn’t change anything about our commercial relationship,” Armstrong said. “As for any future deals, that would be a decision for both parties to consider.”
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