Circle’s latest $5 billion secondary share sale has reignited tensions between crypto giants Ripple and Coinbase, with Ripple executives questioning the motives behind Coinbase’s deepening relationship with Circle. The sale, which offered existing shareholders the opportunity to cash out at a premium valuation, has underscored the growing competition among firms aiming to dominate the stablecoin sector.

Coinbase, a known backer and strategic partner of Circle, stands to benefit significantly from the valuation boost, further tightening its influence over USDC—the second-largest stablecoin by market cap. This development has not gone unnoticed by Ripple, which has been actively pushing its own stablecoin initiatives and sees Circle’s growing valuation as both a threat and a market signal.

Ripple’s Chief Technology Officer, David Schwartz, openly questioned the structure and timing of the deal, suggesting it may reinforce a “closed ecosystem” narrative where a few players control the future of crypto payments. He implied that Coinbase’s increased financial alignment with Circle could hinder broader innovation in the stablecoin space.

Meanwhile, Circle maintains that the sale strengthens its position ahead of a potential IPO and affirms market confidence in its regulatory-first approach. However, the strategic positioning of Coinbase in the stablecoin race raises questions about market…