A proposed acquisition of Circle Internet Financial, the company behind Ripple's USD Coin (USDC), is said to have been rejected. Insiders at Circle aware of the proposal believe it was too low, valuing the company at between $4 billion and $5 billion. Ripple has pursued the acquisition indefinitely; however, they have yet to confirm a new offer.
Circle is still aiming for the IPO that the company officially filed for earlier this month. The company is seeking a valuation in the range of $4 billion to $5 billion and plans to list on the New York Stock Exchange under the ticker symbol "CRCL". Market participants view Circle's rejection of Ripple's offer as a management move to maintain control during a critical growth phase.
A spokesperson for Circle declined to comment on this article
"due to regulatory requirements and holiday time constraints."
Ripple has also not publicly commented on the deal.
The battle: RLUSD vs USDC
Ripple launched the stablecoin RLUSD in December 2024. Although a latecomer, RLUSD is valued at approximately $317 million, ranking as the 12th largest stablecoin by market cap. It operates on the XRP Ledger and seeks to address liquidity issues faced by institutions in cross-border payments.
In contrast, Circle's USDC remains dominant, with a market cap of nearly $61.5 billion. USDC is 100% backed by US dollar reserves and is available on prominent payment networks, DeFi protocols, and centralized exchanges.
Prospects of RLUSD and price stability
RLUSD is a fiat-backed stablecoin pegged at a 1:1 ratio with the US dollar and will serve as a means to secure value and protect against market volatility. And, unlike most other regulated stablecoins, it is often traded at or close to $1.00.
However, the increasing tax burden means that usage is also on the rise, particularly among organizations using Ripple's blockchain for instant payments. RLUSD is the native of the XRP Ledger, enabling fast and cost-effective transactions, making it suitable for cross-border payments. Its increasingly expanding circulation also occurs against the backdrop of Ripple's efforts to compete with established rivals, including USDC and USDT.
Ripple expands its network as the acquisition fails
Ripple has been seeking larger financial infrastructure solutions. In April 2025, the company completed the acquisition of Hidden Road, a major digital brokerage platform, for $1.25 billion. This acquisition allows Ripple to leverage RLUSD as collateral to trade institutional products and access the XRP Ledger for post-trade payments.
All are seen as a response to Circle's unsuccessful acquisition bid and provide Ripple with liquidity channels and institutional infrastructure that the business previously could not access.
Circle prepares for public launch
According to FXStreet's IPO, if successful, this will be one of the largest public offerings by a cryptocurrency-related company in 2025. As stablecoins gain acceptance, the company is positioning itself as a viable alternative to traditional banking and fintech infrastructure.
Recently, Circle has also made headlines for its efforts to expand the Circle Payment Network, allowing near-instant cross-border payments for banking partners, fintech applications, and Web3 platforms. Continue to follow us on Twitter and LinkedIn and join our Telegram channel for more news.