Circle

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Circle, the issuer of the USDC stablecoin, has firmly denied reports suggesting it is engaged in informal discussions regarding a potential sale to either US-based crypto exchange Coinbase or blockchain payment company Ripple. 

This denial comes in light of a report from PYMNTS, which highlighted that Circle remains focused on its initial public offering (IPO), initially filed in April.

Circle Focuses On IPO Despite Ongoing Acquisition Interest

A spokesperson for Circle stated to the news outlet, “Circle is not for sale. Our long-term goals remain the same.” This statement follows claims made by Seeking Alpha, which referenced a paywalled article from Fortune indicating that Circle was seeking a valuation of at least $5 billion in its negotiations with Coinbase and Ripple as well as in its upcoming IPO.

Earlier reports had indicated that Circle rejected a takeover bid from Ripple, which ranged between $4 billion and $5 billion, citing the offer as too low. While Ripple has expressed ongoing interest in acquiring Circle, it has not made a decision regarding a new offer, as Circle continues to pursue its IPO.

Circle’s IPO plans have seen a resurgence after a previous delay in December 2022. The company announced on April 1, 2024, that it had engaged investment banks to underwrite the IPO, although the exact timing for the public offering has yet to be determined. 

The renewed interest in public offerings within the cryptocurrency sector is partly attributed to a wave of digital asset megadeals propelled by a crypto-friendly administration under President Donald Trump and a more relaxed regulatory environment in the US.

Ripple, Coinbase, Pursue Major Growth Strategies

In recent weeks, Ripple made headlines by acquiring prime brokerage Hidden Road for $1.25 billion, a move that positions it as the first cryptocurrency firm to own and operate a multi-asset prime broker. 

Coinbase, on the other hand, has also been active in expanding its reach. On May 9, the company announced plans to acquire Dubai-based crypto derivatives exchange Deribit for $2.9 billion, aiming to strengthen its position in the global derivatives market.

In addition to its IPO endeavors, Circle has also been pursuing strategic acquisitions. On January 21, the company announced its acquisition of Hashnote, the issuer of the USYC stablecoin, which is incubated by Cumberland Labs, the largest tokenized treasury and money market fund globally. 

The stablecoin issuer’s CEO Jeremy Allaire remarked that this acquisition would unlock significant potential in a market increasingly driven by institutional adoption, where participants expect market structures akin to traditional finance.

The daily chart shows XRP’s price consolidation. Source: XRPUSDT on TradingView.com

When writing, XRP, the fourth largest cryptocurrency in terms of market cap, trades at $2.31, failing to seize Bitcoin’s (BTC) momentum after reaching a new all-time high, with the altcoin registering losses of 9% in the past fourteen days. 

Featured image from DALL-E, chart from TradingView.com 

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