Ripple, the blockchain payments firm behind XRP and the RLUSD stablecoin, reportedly offered $4 billion to $5 billion to acquire Circle, the issuer of the USDC stablecoin, according to a Bloomberg report on April 30, 2025. Circle rejected the bid, deeming it too low, as it focuses on its upcoming initial public offering (IPO) filed in April 2025, aiming to list on the NYSE under the ticker “CRCL” with a valuation estimated between $4 billion and $6 billion.
Sources suggest Ripple’s offer may have included illiquid equity rather than full cash, which Circle, backed by strong investors like BlackRock and Fidelity, found unappealing given its IPO plans and USDC’s $61.7 billion market cap compared to RLUSD’s $316.9 million. Ripple remains interested but hasn’t decided on a new bid, while Circle prioritizes independence and regulatory compliance. The rejection highlights strategic differences, with Ripple aiming to fast-track its stablecoin market presence and Circle betting on its IPO and established USDC network.
The rejection of Ripple’s $4B-$5B bid to acquire Circle carries significant implications for both companies, the stablecoin market, and the broader crypto ecosystem. Acquiring Circle would have given Ripple control of USDC, the second-largest stablecoin with a $61.7B market cap, significantly boosting its market share against Tether’s USDT ($216.7B). This could have accelerated Ripple’s RLUSD ($316.9M market cap) adoption by leveraging Circle’s established infrastructure and partnerships.
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Ripple now faces a tougher path to grow RLUSD organically, competing with USDC’s entrenched network of 800+ partners, including Visa and MoneyGram, and its regulatory clarity in the U.S. Ripple’s continued interest suggests it may return with a higher offer or explore other acquisitions, but its reliance on illiquid equity could limit appeal to premium targets like Circle.
Circle’s IPO and Independence
Circle’s rejection signals confidence in its $4B-$6B IPO valuation and its ability to thrive independently. A successful NYSE listing could attract institutional investors, further solidifying USDC’s dominance. Circle’s focus on compliance and its U.S.-based operations position it favorably in a tightening regulatory environment, especially compared to Ripple, which has faced SEC scrutiny over XRP. If the IPO underperforms or market conditions sour, rejecting Ripple’s bid could be seen as a misstep, especially if Circle’s valuation fails to meet expectations.
The bid reflects growing consolidation interest in the stablecoin sector as firms seek scale to compete with USDT. Circle’s rejection may deter similar deals in the short term, encouraging standalone growth. Ripple’s aggressive expansion contrasts with Circle’s conservative, compliance-driven approach, highlighting divergent strategies in a market where trust and regulatory alignment are critical. Without a deal, USDC and RLUSD will continue competing, potentially fragmenting liquidity and adoption, which could benefit USDT or emerging stablecoins.
Circle’s IPO success could boost confidence in crypto markets, signaling maturity and institutional acceptance. Conversely, failure could dampen enthusiasm for crypto IPOs. A Ripple-Circle merger would have drawn intense regulatory attention, especially given Ripple’s SEC history. Circle’s independence avoids this but keeps it under the spotlight as a major U.S. crypto player.
Ripple’s acquisition aim was tied to enhancing its cross-border payment solutions. Its failure to acquire Circle may push it to innovate internally or seek other partners, impacting its rivalry with traditional systems like SWIFT. Posts on X indicate mixed views: some see Circle’s rejection as a bold move to maintain control and capitalize on its IPO, while others argue it missed a chance to align with Ripple’s blockchain expertise.
Critics of Ripple highlight its weaker negotiating position due to legal baggage, while Circle’s strong backing from BlackRock and Fidelity is viewed as a stabilizing factor. Circle’s rejection prioritizes its IPO and independence, betting on USDC’s market strength and regulatory positioning, while Ripple must now recalibrate its stablecoin ambitions. The outcome reinforces competitive tensions in the stablecoin space and could shape investor and regulatory perspectives as Circle’s IPO looms.
