The post Ripple vs Coinbase Bidding War Begins, Who Will Win the Battle for Circle? appeared first on Coinpedia Fintech News
Big news is coming out of the crypto world — Coinbase and Ripple are now competing to buy Circle, the company behind the popular stablecoin USDC.
Circle had been planning to go public with an IPO (Initial Public Offering), but now it seems they might sell the company instead. According to a Fortune report, unnamed sources confirmed that both firms are in talks with Circle, although nothing has been finalized yet.
Earlier this year, Ripple reportedly offered $4 to $5 billion to acquire Circle, but their offer was rejected. Now, with competition growing, experts believe the price could rise to $6 to $6.5 billion. That’s a typical situation in bidding wars, where companies pay a little extra — called a “premium” — to secure a deal.
According to the Paul Barron Network, this sale is about much more than just owning a company. Whoever takes control of USDC would get a massive position in the fast-growing stablecoin market. Stablecoins are becoming serious competitors to traditional payment systems like Visa and Mastercard, and both Ripple and Coinbase know how valuable USDC could be in the years ahead.
Can Coinbase Afford the Deal?
Looking at the numbers, Coinbase is in a decent position to go for this deal. According to recent financial data, Coinbase currently has about $8.5 billion in cash and $2.8 billion in crypto investments. That brings their total to around $11.3 billion in liquid assets. While they could afford the purchase, it would require them to reshuffle their balance sheet and possibly take loans or make financial adjustments. It wouldn’t be an easy decision.
What About Ripple?
Ripple, on the other hand, doesn’t necessarily need Circle to survive. The company has been making big moves lately, including launching regulated XRP futures on the CME Group. It’s a clear sign Ripple is far from slowing down, despite facing legal and market challenges in the past.
Ripple once handled up to 20% of USDC traffic at one point, mostly when converting funds from Tether (USDT). This shows Ripple already understands how to manage stablecoins on a big scale — making them a serious threat in this bidding war.
Why Didn’t Coinbase Buy Circle Earlier?
One big question everyone’s asking is — why hasn’t Coinbase already bought Circle? They had the chance earlier when prices might have been lower. Was it a missed opportunity, a strategic decision, or is there something happening behind the scenes that we don’t know about yet?
Who Will Win?
At this stage, it’s anyone’s game. If Circle suddenly decided to accept an offer today, who would have the upper hand? The current guess puts the chances at around 45% for Coinbase, 45% for Ripple, and 10% for a surprise third-party bidder — a “dark horse” that could suddenly join the race now that news of the sale is out.
Whoever wins this battle could secure a powerful position in the US crypto market, especially as stablecoins continue to gain popularity for everyday transactions.