- Ripple has reportedly increased its acquisition offer for Circle from $5 billion to $20 billion in a bid to dominate the stablecoin market through USDC, following the underperformance of its own RLUSD.
- While neither company has confirmed the offer, the rumored deal—if successful—could significantly shift Ripple’s role in cross-border payments and the digital dollar ecosystem.
In a dramatic escalation, Ripple has reportedly quadrupled its acquisition offer for Circle, the issuer behind the $61.7 billion USDC stablecoin, jumping from an initial $5 billion bid to a staggering $20 billion. This bold move, still unconfirmed by either company, could reshape the stablecoin landscape and redefine Ripple’s role in the digital dollar ecosystem.
A Strategic Play for Stablecoin Dominance
Ripple’s interest in Circle appears driven by a desire to fast-track its position in the booming stablecoin sector. Despite launching its own stablecoin, RLUSD, in December 2024, Ripple has failed to gain significant traction, with a market cap sitting at just $317 million. In stark contrast, Circle’s USDC is the second-largest stablecoin globally, trailing only Tether’s USDT.
Acquiring Circle would instantly catapult Ripple into a dominant position, giving it a mature, reserve-backed product that aligns with its core mission—streamlining cross-border payments. For Ripple, this isn’t just an acquisition; it’s a leap toward becoming a foundational player in the tokenized dollar space.
IPO Plans and Regulatory Shifts
The timing of Ripple’s aggressive offer is no coincidence. Circle filed for a confidential U.S. IPO in April, a move that could be complicated or entirely derailed by a merger. However, the company has remained tight-lipped, likely constrained by SEC quiet period rules.
Meanwhile, Ripple is emerging from a long-standing legal battle with the SEC. In March, the agency dropped its appeal against Ripple after the firm settled for $50 million. Ripple’s improved regulatory standing—bolstered by its recent ties to pro-crypto political figures like Donald Trump—may have emboldened its acquisition ambitions.
Risks and Market Reactions
Despite the social media frenzy sparked by influencers like “Crypto Barbie,” the $20 billion figure remains speculative. Neither Ripple nor Circle has confirmed the offer. Still, the crypto community is watching closely, as the potential merger raises questions about market centralization and the future of neutral, reserve-backed stablecoins like USDC.
If Ripple succeeds, the acquisition could mark one of the most transformative deals in crypto history—signaling a shift from fragmented innovation to consolidated, enterprise-driven growth.
DISCLAIMER:
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of the publisher. The publisher does not endorse or guarantee the accuracy of any information presented in this article. Readers are encouraged to conduct further research and consult additional sources before making any decisions based on the content provided.
