In a bold move that underscores the intensifying competition in the digital asset space, Ripple has reportedly made a $4–5 billion offer to acquire Circle, the issuer of the popular USDC stablecoin. However, the bid was swiftly rejected by Circle, which deemed the valuation too low—especially given its recent strategic pivot toward a U.S. initial public offering (IPO).
This failed acquisition attempt highlights the growing importance of stablecoins in the broader blockchain and financial infrastructure landscape. With Circle’s USDC commanding a market capitalization of approximately $62 billion**, it remains the second-largest stablecoin globally, trailing only Tether’s USDT. Meanwhile, Ripple’s own stablecoin, RLUSD, has gained traction with a market cap surpassing **$300 million—a fraction of USDC but indicative of Ripple’s expanding footprint in the sector.
Why Circle Said No
Circle’s decision to reject Ripple’s offer comes just weeks after the company confidentially filed for an IPO in the United States. Industry analysts suggest this timing is no coincidence. By pursuing a public listing, Circle is likely aiming to unlock higher valuations through direct market access rather than accepting what it views as an undervalued private offer.
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The $4–5 billion bid, while substantial, may not reflect Circle’s long-term potential—especially as regulatory clarity improves and institutional adoption of stablecoins accelerates. A public market debut could position Circle to raise significantly more capital and increase its visibility among traditional investors.
Moreover, Circle has learned from past missteps. In 2018, it acquired cryptocurrency exchange Poloniex for $400 million—a deal that ultimately resulted in a massive write-down and eventual spin-off by late 2019. This experience may have made Circle more cautious about strategic moves that don’t align with shareholder value.
Ripple’s Aggressive Growth Strategy
Ripple’s interest in acquiring Circle fits within a broader pattern of aggressive expansion. The company recently acquired Hidden Road, a prime brokerage firm, for $1.2 billion in April 2025—a move designed to enhance liquidity and institutional support for XRP and the XRP Ledger.
This acquisition was one of the largest in crypto history and signaled Ripple’s intent to become a full-service financial infrastructure provider—not just a payments protocol.
Ripple also entered the stablecoin market in 2024 with the launch of Ripple USD (RLUSD). Though still small compared to USDC or USDT, RLUSD’s rapid growth reflects growing demand for regulated, transparent dollar-backed tokens. Acquiring Circle would have instantly catapulted Ripple into the top tier of stablecoin issuers.
According to Ripple President Monica Long, the company is in an “acquisitive” phase rather than considering an IPO itself. While Ripple was previously valued at $11 billion in 2024, CEO Brad Garlinghouse has since described that figure as outdated, hinting at a much higher valuation today.
The Evolving Legal Landscape
One factor that may have emboldened Ripple’s expansion plans is its progress in resolving long-standing legal issues with the U.S. Securities and Exchange Commission (SEC). After a four-year battle that began in 2020, a federal court ruled in August 2024 that Ripple violated securities laws and ordered it to pay $125 million.
However, in March 2025, Garlinghouse announced that the SEC would drop its appeal—a major win for Ripple. The company agreed to pay a net $50 million after offsets, clearing a significant regulatory hurdle.
This legal resolution has improved market confidence and likely strengthened Ripple’s financial position, enabling bold moves like the Circle bid.
Stablecoins: The New Battleground
Stablecoins have emerged as critical infrastructure in the digital economy. They bridge traditional finance with blockchain-based systems, enabling fast, low-cost cross-border payments and serving as on-ramps for crypto trading.
With USDC’s $62 billion market cap, Circle plays a central role in this ecosystem. Its partnerships with major financial institutions and compliance-first approach have made it a preferred choice for regulated entities.
Ripple’s interest in USDC isn’t just about size—it’s about integration. Combining USDC’s reach with Ripple’s global payments network could create a powerful synergy for banks, fintechs, and remittance providers using blockchain technology.
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Yet without regulatory approval and mutual agreement, such integration remains speculative. For now, both companies are charting independent paths—Circle toward public markets, Ripple through strategic acquisitions.
Core Keywords
- Ripple acquisition
- Circle USDC
- Stablecoin market
- Crypto IPO
- RLUSD
- XRP Ledger
- SEC lawsuit Ripple
- Hidden Road acquisition
Frequently Asked Questions (FAQ)
Q: Why did Circle reject Ripple’s $5 billion offer?
A: Circle reportedly considered the offer undervalued, especially given its recent confidential filing for a U.S. IPO. The company likely believes it can achieve a higher valuation through public markets.
Q: Is Ripple planning to make another bid for Circle?
A: As of now, Ripple has not confirmed whether it will submit a revised offer. The company is reportedly evaluating its options following the initial rejection.
Q: How does RLUSD compare to USDC?
A: RLUSD is Ripple’s own stablecoin, with a market cap exceeding $300 million. In contrast, USDC has a market cap of around $62 billion, making it one of the largest stablecoins globally.
Q: What impact did the SEC lawsuit have on Ripple?
A: The SEC case concluded in 2024 with Ripple paying a $125 million penalty (later reduced to $50 million net). While costly, the resolution removed major uncertainty and allowed Ripple to pursue expansion more aggressively.
Q: What is the significance of Ripple’s acquisition of Hidden Road?
A: The $1.2 billion purchase of Hidden Road strengthens Ripple’s institutional offerings by adding prime brokerage services, improving liquidity for XRP and supporting enterprise clients on the XRP Ledger.
Q: Could Circle still go public in 2025?
A: Yes—Circle has not set a firm timeline but remains focused on its IPO plans. Market conditions and regulatory developments will likely influence the final decision.
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