- Ripple’s attempt to acquire Circle, the issuer of USDC, is part of its strategy to dominate stablecoin liquidity and strengthen XRP’s position as a central hub for digital finance.
- If successful, this move could reshape the future of global finance, positioning XRP as a key player in both cross-border payments and decentralized finance.
Ripple’s potential acquisition of Circle, the issuer of the second-largest stablecoin, USDC, has taken the cryptocurrency world by storm. With an initial offer of $5 billion — later rumored to have increased to $20 billion — Ripple’s ambition to acquire Circle is shaping up as a major power play in the global finance arena. This acquisition could redefine the future of digital currencies, with XRP positioning itself at the heart of the action.
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Ripple’s Strategy: Gaining Control Over Stablecoin Liquidity
On the surface, Ripple’s interest in Circle may appear as an effort to eliminate a competitor in the stablecoin space. However, the situation is far more nuanced. Ripple’s recent acquisition of the brokerage firm Hidden Road indicates that its focus is on much broader goals — gaining control over liquidity and enhancing institutional partnerships. By acquiring Circle, Ripple could not only strengthen its own stablecoin, RLUSD, but also dominate the digital finance landscape.
lots of confusion about the @Circle / @Ripple deal on X.
having worked at @GoldmanSachs and @Blackstone, i thought i’d share some insight into how acquisitions typically work.
TLDR Ripple’s final offer will likely be $6 billion to $6.5 billion.
why?
a typical acquisition…
— Dom (Bull/ish) | EasyA (@dom_kwok) May 2, 2025
Circle, with a market capitalization of over $61 billion, manages USDC, one of the most widely adopted stablecoins. While Circle doesn’t directly own the assets in reserve, it earns substantial interest income from managing these funds. This revenue stream, which forms the foundation of Circle’s valuation, could be a key part of Ripple’s $20 billion offer.
How Ripple Plans to Bridge Major Stablecoins with XRP
If the Ripple-Circle deal goes through, XRP could become a pivotal bridge between RLUSD and USDC, connecting the two largest stablecoins outside of Tether’s ecosystem. This could position XRP as more than just a transactional tool for cross-border payments — it would become the central hub for interoperability between digital assets, enhancing its role in the evolving blockchain ecosystem.
Additionally, Ripple could inherit Circle’s regulatory credibility and institutional relationships, potentially opening the doors to Wall Street. Amid regulatory challenges, including the ongoing SEC scrutiny, this move could shift Ripple’s positioning from a disruptive player to a trusted entity in the digital finance space.
⚠️🚨 IF RIPPLE ACQUIRES CIRCLE, XRP’S PRICE WON’T JUST REACT—IT COULD EVOLVE.
Most are watching the deal.
But this is about what happens to XRP if it goes through.
Here’s what every holder needs to understand. 🧵👇 pic.twitter.com/RXWpUKmL8K
— All Things XRP (@XRP_investing) May 2, 2025
A New Era for XRP
The Ripple-Circle acquisition could also serve as a catalyst for XRP’s value. Experts like Crypto Eri suggest that XRP’s use case is evolving, with the token becoming integral to Ethereum Virtual Machine (EVM)-compatible chains and offering gas token functionality. XRP’s growing role in decentralized finance (DeFi), especially with its upcoming MoreMarkets protocol, highlights its transformation into a multidimensional asset.
XRP is no longer just a tool for low-cost, fast cross-border transactions — it’s becoming essential for the future of institutional crypto adoption and DeFi innovation.
ALSO READ:Ripple’s RLUSD Stablecoin Now Listed on Gemini, Expanding Its Reach
Why Circle May Decline
Despite the enticing offer, Circle may decline Ripple’s overtures. With an IPO on the horizon, Circle may prefer to remain independent, especially if it believes it can achieve a higher valuation post-listing. Furthermore, the regulatory challenges facing both companies, particularly in the U.S. and EU, make such a deal more complex.
Ripple’s aggressive pursuit of Circle signals its intent to shape the future of digital finance. Whether or not the deal goes through, it demonstrates Ripple’s larger strategy of controlling liquidity, setting market standards, and building an infrastructure that rivals traditional systems like SWIFT. XRP is evolving into a central pillar of global digital finance, and the outcome of this acquisition could mark one of the boldest moves in crypto history.
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