A piece of news causing a stir in the crypto community: Ripple – the famous blockchain payment company – once made an offer of up to 5 billion USD to acquire Circle, the issuer of the USDC stablecoin, but was rejected. Behind this missed deal are many significant questions about strategy, ambition, and the race for dominance in the increasingly heated stablecoin sector.
The discreet deal: Ripple offered 4–5 billion USD to buy Circle
According to information disclosed by Bloomberg, #Ripple proposed to acquire Circle at a price between 4 to 5 billion USD. However, Circle rejected this offer, reportedly deemed 'not attractive enough' at the time they are preparing to go public (IPO).
At the beginning of April, Circle filed paperwork with the U.S. Securities and Exchange Commission (SEC), officially beginning the IPO process. During this so-called 'quiet period,' Circle is not allowed to publicly comment on financial plans, including acquisition proposals.
Why does Ripple want to buy Circle?
Since March, Ripple's CEO – Mr. Brad Garlinghouse – has publicly shared that the company is actively seeking acquisition deals, particularly targeting blockchain infrastructure companies, to expand its influence in the crypto industry.
Ripple's targeting of #Circle is entirely reasonable:
Circle operates USDC – the second largest stablecoin in the world (after USDT).
USDC is currently deployed on 19 different blockchains.
At the time Ripple made the offer, the market capitalization of USDC was near its historical peak: 62.3 billion USD.
Meanwhile, Ripple has just launched its own stablecoin RLUSD in December 2024, operating on Ethereum and XRP Ledger. Although it is growing rapidly, RLUSD has only reached a market capitalization of about 317 million USD – still very small compared to $USDC .
If Ripple were to acquire Circle, it would immediately ascend to the top position in the stablecoin market, a crucial part of crypto and DeFi payment infrastructure.
Circle declines: Because of the IPO and the price being too low?
There are two main reasons why Circle declined this deal:
IPO is approaching: Circle is betting on a public listing to attract larger investments and increase company value. Selling to Ripple now would cause them to miss that opportunity.
Valuation not commensurate: With USDC's market capitalization exceeding 60 billion USD and a clear IPO plan, the 5 billion USD offer from Ripple may be considered too low compared to Circle's long-term potential.
Stablecoin: The new battlefield of the giants
As regulations on stablecoins are being considered by the U.S. Congress to create a clear legal framework, many large financial corporations may enter this market, including names like Bank of America or leading tech companies.
This explains why M&A deals in the stablecoin sector are heating up. For example, last October, Stripe – a giant in the payment industry – acquired the stablecoin platform Bridge for 1.1 billion USD, one of the largest deals in crypto history.
Stablecoins are not only price stabilization tools, but also the backbone of DeFi protocols, cross-border payment ecosystems, and emerging blockchain-based financial services.
The future of Ripple and Circle after the missed deal
Ripple: Not acquiring Circle does not mean failure. Ripple will continue to push its strategy of acquiring other blockchain infrastructure companies. With RLUSD growing and the global influence of XRP, Ripple still has many opportunities to compete in the stablecoin market.
Circle: With an advancing IPO plan and a strong position in the stablecoin sector, Circle is expected to attract more significant investments and could become the next public crypto company after Coinbase. In addition to Circle, Kraken is also preparing to list its shares, indicating a rising wave of crypto companies going public.
Impact on Binance users and the crypto market
For crypto users in general and users on Binance in particular, the missed deal between Ripple and Circle serves as a reminder of the fierce competition in the stablecoin sector – which directly affects:
Market liquidity.
Cross-chain transaction fees.
The reliability and transparency of collateralized assets.
The entry of giants like Ripple, Stripe, or traditional financial institutions into the game will increase competition, thereby enhancing service quality and safety for users.
However, this also means that smaller or less transparent stablecoins are likely to be phased out. Users need to pay attention to choosing stablecoins with clear reserves, regularly audited, and supported by reputable platforms like Binance.
Risk warning: The crypto market is always highly volatile and carries many risks, especially in areas like stablecoins and DeFi. Users need to conduct thorough research before making investment decisions and should only use capital they can afford to lose. This article does not constitute investment advice.