Rip$ple’s Circle Acquisition Could Spell Trouble for Crypto, Warns MetaLeX’s Shapiro
TL;DR:
Ripple and Coinbase are in a bidding war to acquire Circle, the issuer of USDC, with bids possibly reaching $11 billion. MetaLeX founder Gabriel Shapiro has labeled a Ripple victory as “disastrous,” citing antitrust concerns and Ripple’s controversial history. If the deal goes through, it could dramatically shift the stablecoin landscape.
The Battle for USDC Begins
In one of the biggest potential shakeups in crypto’s recent history, Ripple and Coinbase are now competing to acquire Circle, the firm behind the second-largest stablecoin, USDC. With a rumored valuation of $11B, this move could redefine market dominance.
But not everyone is cheering.
Shapiro Sounds the Alarm
Gabriel Shapiro, founder of MetaLeX Labs and a leading voice on crypto legal frameworks, didn’t mince words:
“Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive.”
He cited Ripple’s past behavior — including its 2022 Greenpeace alliance against Bitcoin mining — as examples of the company's aggressive tactics. Shapiro warns that if a deal is inked, Ripple could face serious scrutiny from U.S. regulators (DoJ & FTC), especially under the Revlon doctrine, which requires Circle to prioritize shareholder value while considering antitrust risks.
Ripple’s High-Stakes Play
Ripple’s earlier $4–$5B offer was rejected. Now, it's reportedly back with a stronger bid — potentially mixing cash and its massive XRP reserves (estimated $94B, based on ~$40B XRP at $2.37).
But there’s a catch: Ripple can’t freely liquidate XRP due to ongoing legal constraints. That could complicate the financial mechanics of any deal.
Coinbase: The Silent Contender
Meanwhile, Coinbase sits on a solid balance sheet with $8.5B in cash and nearly $2.8B in crypto — and may face fewer regulatory hurdles in acquiring a U.S.-based firm like Circle.
One insider said bluntly:
“If Coinbase wanted to buy them, Circle would sell in a heartbeat.”
Still, the exchange has remained silent — fueling speculation of behind-the-scenes negotiations or waiting for Ripple to overextend.
Dark Horses & Future Shock
Japan’s SBI Holdings, a known Ripple ally and major XRP holder, could emerge as a strategic backer. But regardless of the winner, this deal could redefine the stablecoin ecosystem overnight.
The stakes? Control over USDC, influence across DeFi and TradFi, and the future regulatory shape of crypto finance.
Bottom Line:
If Ripple succeeds, it won’t just acquire Circle — it could become the most powerful issuer across blockchains. But with legal risks and regulatory pushback mounting, the crypto industry may be staring at a pivotal momont.$btc.$xrp.$us