Ripple is pursuing opportunities to expand its presence in the stablecoin market, with reports suggesting a significant proposal valued between $4 billion and $5 billion to acquire Circle Internet Financial, the organization behind USDC.
Although the initial bid was rejected as "too low," insiders reveal that Ripple is still persevering, driven by a significant XRP reserve exceeding $100 billion. This reserve includes $11.7 billion in liquid XRP and an astonishing $95.7 billion secured by escrow. Any potential future proposal from Ripple is likely to involve a combination of cash and XRP tokens.
The timing of these developments is crucial, as Circle has submitted a highly anticipated IPO in early April, but it has yet to commence and may not proceed as planned. Private discussions involving four sources suggest that Circle has not formally explored acquisition talks with either Ripple or Coinbase. While the company aims for a $5 billion valuation and is committed to a public offering, sources indicate that a strategic acquisition could still take place.
According to Fortune, there is a likelihood that Coinbase will acquire Circle more, considering their close business relationship. The two companies co-founded the Centre Consortium, and Coinbase is currently earning a substantial portion of interest income from USDC reserves—especially if they are held on the company's platform. Coinbase also holds a contractual veto over new partnerships and Circle's IP if Circle becomes insolvent.
However, Ripple's position with its M&A strategy—including the $1.25 billion acquisition of Hidden Road—suggests that they are not backing down. With Circle at the center of the stablecoin race, both Ripple and Coinbase will compete for it.
However, it is important to note that a spokesperson for Circle told TheStreet that, "Circle is not for sale. Our long-term goal remains unchanged."