The crypto world isn’t short on drama — but this one might be a defining chapter.
Two titans of the industry, Ripple and Coinbase, are reportedly in a fierce bidding war to acquire Circle, the issuer of USDC — a stablecoin that underpins trillions in digital transactions annually. The deal? Estimated at a staggering $11 billion.
This isn't just a high-stakes acquisition. It's a power play that could redefine who controls liquidity, trust, and influence in the digital asset ecosystem.
But not everyone is cheering.
🧨 The Ripple Effect — and Why Critics Are Sounding the Alarm
Gabriel Shapiro, founder of MetaLeX Labs and a respected legal mind in the crypto space, isn’t holding back.
“Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive,”
— Gabriel Shapiro
Shapiro is urging regulators — particularly the FTC and Department of Justice — to pay close attention. He believes Ripple’s growing influence poses a systemic risk to the crypto economy, and he's not alone.
Pointing to Ripple’s past behavior — including campaigns that publicly targeted Bitcoin’s mining model — Shapiro accuses the firm of attempting to dominate by discrediting rivals. He even referenced the 2022 partnership between Ripple co-founder Chris Larsen and Greenpeace as a strategic shot at Bitcoin.
The message is clear: If this deal goes through, expect fireworks from regulators.
💰 Billions on the Table — and a Bidding War Heating Up
Reports suggest Ripple initially offered $4–$5 billion for Circle earlier this year — but was turned down. Now, it’s back, rumored to be readying a significantly larger bid — possibly combining cash reserves and its enormous XRP holdings.
Estimates put Ripple’s total assets at around $94 billion, including roughly $40 billion in XRP, based on recent token valuations. But there’s a catch — Ripple is still under the regulatory microscope and may not have free rein to liquidate those tokens without legal clearance.
On the other side, Coinbase holds a solid war chest:
💼 $8.5 billion in cash
🪙 $2.8 billion in crypto
Yet, it hasn’t made a public move — prompting speculation. Is Coinbase waiting for a better entry point? Or are they letting Ripple draw the heat?
⚖️ Regulatory Minefield or Market Revolution?
For many in the industry, Ripple’s aggressive pursuit signals ambition — but also overreach. Critics argue that acquiring USDC would give Ripple outsized control over cross-chain liquidity and stablecoin adoption.
Shapiro insists Circle must weigh its responsibilities under the Revlon Doctrine, a legal principle requiring firms to act in shareholders’ best interests — which includes steering clear of legal entanglements and regulatory backlash.
And here’s the wildcard: SBI Holdings — a Japanese financial powerhouse and long-time Ripple partner — might throw its weight behind the deal, or even emerge as a third contender.
🧭 What’s at Stake?
This isn’t just a business acquisition — it’s a pivotal moment for crypto’s evolution.
If Ripple succeeds, it could dominate both the infrastructure layer (via XRP and RippleNet) and the liquidity layer (through USDC). That’s a level of control we’ve rarely seen in decentralized finance — and it has some industry veterans deeply concerned.
Whether regulators act swiftly or let market forces play out, one thing is certain:
The future of stablecoins is on the line — and crypto may never look the same again.