The battle to acquire Circle, the issuer of the second-largest stablecoin USDC, has taken a dramatic turn as Ripple reportedly escalates its bid to outpace Coinbase with an offer of up to $11 billion. This new move intensifies the ongoing competition between the two crypto giants to gain control of a company seen as central to the future of digital finance.

According to a recent report by Fortune, Ripple is attempting to outmaneuver Coinbase in what appears to be an informal but escalating bidding war for Circle. The report cites four unnamed sources who confirmed that Circle has been holding preliminary discussions with both Ripple and Coinbase regarding a potential acquisition. These talks come at a time when Circle is also contemplating an IPO, with an internal valuation target of $5 billion.

Earlier this year, Ripple reportedly submitted an offer in the range of $4 billion to $5 billion for Circle. However, this bid was turned down by Circle, which deemed it too low—especially as the company seeks to go public at a valuation no less than $5 billion.

While Coinbase was initially seen as the frontrunner due to its longstanding relationship with Circle, Ripple is now said to be preparing a much more aggressive proposal. This latest offer could total between $9 billion and $11 billion, with Ripple expected to combine cash with a significant amount of its XRP holdings as part of the deal.

Ripple’s financial position gives it a strong advantage. According to its Q1 2025 Markets Report, Ripple controls over 4.56 billion XRP in liquid holdings, currently valued at approximately $10.72 billion. It also holds a staggering 37.13 billion XRP in escrow, worth more than $87 billion. Leveraging part of these reserves gives Ripple the flexibility to significantly sweeten its offer without entirely relying on cash.

Sources familiar with the matter suggest that Ripple’s updated offer is aimed at pushing Circle to reconsider and possibly tip the balance away from Coinbase. One investor, Paul Barron, even suggested that Ripple now holds the upper hand, thanks to its ability to offer both liquid assets and blockchain-native incentives, which could align more naturally with Circle’s digital asset infrastructure.

Coinbase, however, is far from out of the race. As a publicly traded company, Coinbase has multiple financial tools at its disposal. It reported $8 billion in cash reserves in Q1 2025 and could potentially raise more capital through the issuance of stock or new investments. Moreover, its history with Circle could still play a decisive role in the final outcome.

Coinbase and Circle co-founded the Centre Consortium in 2018 to jointly develop and expand USDC. Although that partnership formally ended in 2023, Coinbase acquired a minority stake in Circle, while Circle took full control of USDC’s governance. Under the terms of their current agreement, Circle is barred from entering any partnership that would affect Coinbase’s USDC revenue stream without the exchange’s consent. This arrangement suggests that Coinbase still holds significant influence over Circle’s strategic decisions.

Given this close relationship and existing contractual obligations, some insiders believe that Coinbase remains better positioned to secure the acquisition, should it formally decide to move forward. Two sources quoted by Fortune claimed that Circle might lean toward Coinbase due to these pre-existing ties, especially if the offer matches or slightly exceeds Ripple’s.

Still, as one source pointed out, “things change every week.” Ripple’s willingness to up its offer and include XRP could dramatically shift the dynamics of this acquisition race. Circle’s public denial of being for sale may simply be a strategic posture while it weighs its options or pushes for better terms.

At the moment, neither Ripple nor Coinbase has officially confirmed any acquisition attempt. Circle, meanwhile, maintains that it remains focused on long-term goals, including a potential IPO. However, with two of the crypto industry’s most prominent companies vying for control, the situation could evolve rapidly.

If either bid succeeds, the outcome could significantly reshape the stablecoin market and the broader crypto financial ecosystem. A Ripple-led acquisition might position USDC closer to the XRP Ledger ecosystem, while a Coinbase acquisition would strengthen the exchange’s grip on one of the most widely used stablecoins in the world.

For now, the crypto community is watching closely as Ripple and Coinbase engage in a high-stakes competition—one that could define the next phase of stablecoin dominance.