Ripple Labs Inc. reportedly offered a $4 to $5 billion deal to acquire Circle, the firm behind the second-largest stablecoin, USDC. The acquisition bid was ultimately rejected, signaling a power struggle in the stablecoin landscape and highlighting diverging visions in crypto’s evolving financial frontier.
According to Bloomberg, the offer was made in 2022 but only surfaced in public reports recently. Despite the magnitude of the deal, Circle declined Ripple’s overture, citing valuation misalignment and strategic independence ahead of its upcoming initial public offering (IPO) in the U.S.
Why Circle Rejected Ripple’s Offer
1. IPO Plans and Valuation Discrepancy
Circle has already filed for a public listing and is aiming for a valuation that exceeds Ripple’s offer. A source close to the matter revealed:
“Circle believed its valuation could surpass $5 billion in public markets, making Ripple’s offer undervalued.”
With USDC commanding a stablecoin market cap of over $32 billion, Circle’s ambitions are rooted in scalability through public capital rather than acquisition.
2. Regulatory Confidence and Independence
Circle’s reputation for regulatory compliance—especially in U.S. jurisdictions—may have played a major role in the decision. The company has deep ties with key financial institutions, including BlackRock and Fidelity, who reportedly back its IPO plans.
Accepting Ripple’s bid could have raised regulatory complexities, especially as Ripple continues to navigate legal challenges with the U.S. Securities and Exchange Commission (SEC).
3. Avoiding Direct Competitor Integration
USDC and Ripple’s recently launched stablecoin RLUSD (Ripple USD) could be viewed as competitors. Industry experts believe merging these two stablecoin visions could create internal conflicts in strategy and direction.
Ripple’s Stablecoin Strategy Continues
Despite the setback, Ripple has not slowed down. Its USD-pegged stablecoin RLUSD, launched earlier in 2025, has already crossed $300 million in market capitalization. With a clear aim to expand into the stablecoin market, Ripple may continue seeking other acquisition targets or scale RLUSD organically.
Brad Garlinghouse, Ripple CEO, previously hinted that stablecoins would be “key to unlocking real-world crypto utility” — an outlook that still holds firm even after Circle’s rejection.
Market Reaction and Investor Sentiment
Token Price (May 1, 2025) 24H Change Market Cap XRP $0.532 -1.1% $28.9B USDC $1.00 (peg) — $32.4B RLUSD $0.997 +0.8% $309M
The rejection triggered modest volatility in XRP, which dipped around 1.1% in the aftermath. Meanwhile, USDC continues to maintain dominance in the U.S. dollar-backed stablecoin arena.
Strategic Implications for the Crypto Market
This high-profile rejection signals a few emerging trends:
Stablecoins are the next battleground: With demand for tokenized dollars rising globally, large players are positioning aggressively.
M&A in crypto is heating up: Ripple’s attempt shows traditional M&A is maturing in crypto, with billion-dollar deals now in play.
IPO vs Acquisition: Circle’s preference for IPO over acquisition highlights a growing appetite for public validation among crypto firms.
Expert Insight
“Circle’s rejection shows the strength of its brand and its belief in USDC’s standalone potential. But Ripple’s move signals it’s serious about becoming a dominant force in dollar-backed assets,”
said Lisa Cameron, fintech analyst at CryptoWatch.
Conclusion
Ripple’s $5B failed attempt to buy Circle marks a defining moment in the stablecoin wars. With Circle eyeing a Wall Street debut and Ripple expanding its RLUSD initiative, the stablecoin battlefield is heating up — and the next move could determine the dominant issuer of tokenized dollars in the post-2025 crypto era.
FAQs
What was Ripple trying to acquire?
Ripple offered to acquire Circle, the issuer of the USDC stablecoin, for $4–$5 billion.
Why did Circle reject the acquisition?
Circle rejected the offer, citing an undervalued bid and a desire to remain independent as it heads toward an IPO.
Will Ripple pursue other acquisitions?
While no announcements have been made, Ripple is expected to continue expanding its stablecoin strategy.
What is RLUSD?
RLUSD is Ripple’s newly launched USD-backed stablecoin introduced in early 2025.
Glossary
USDC – A regulated stablecoin issued by Circle, pegged 1:1 to the U.S. dollar.
IPO (Initial Public Offering) – The process of offering company shares to the public for the first time on a stock exchange.
RLUSD – Ripple Labs’ USD-backed stablecoin launched in 2025.
M&A – Mergers and acquisitions, a business strategy for consolidating companies or assets.
Sources:
fxstreet
coinpaper
Coinpedia
cryptorank
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