Ripple Labs recently proposed to acquire Circle Internet Group Inc. for between $4 billion and $5 billion. However, Circle has declined, suggesting that this price is too low compared to its market value and prospects. Ripple aims to expand its newly launched RLUSD to compete with Tether USDT.
Circle, the second-largest stablecoin issuer, has recorded a market capitalization of approximately $61.6 billion and an average 24-hour trading volume of about $6.9 billion. Although there has been no further move from Ripple, they remain interested in acquiring Circle.
Circle has submitted an IPO application with the U.S. SEC and plans to list under the ticker CRCL on the NYSE. Despite a 16% increase in annual revenue to $1.7 billion, Circle's net income and EBITDA have sharply declined due to rising costs and service cessation. Distribution and transaction costs have also increased due to higher fees from partners, led by Coinbase Global.
Ripple's RLUSD has been launched to improve cross-border payment systems and support the adoption of XRP. However, Ripple faces fierce competition from existing stablecoins, particularly Tether USDT. RLUSD also faces competition from World Liberty Financial's USD1, which has surpassed $2 billion in market capitalization. Circle has not commented on market rumors and maintains its long-term goals despite this competition.
Source: https://tintucbitcoin.com/circle-tu-choi-loi-de-nghi-4-5-ty-usd-tu-ripple/
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