What’s another day in crypto without high-stakes drama?
Right now, Ripple and Coinbase are reportedly locked in a multi-billion dollar bidding war to acquire Circle, the powerhouse behind USDC — one of the largest dollar-backed stablecoins in the world. The rumored deal value? A jaw-dropping $11 billion.
But while this might sound like another power play in crypto consolidation, not everyone is cheering.
Why This Matters
If Ripple manages to close the deal, it wouldn’t just be acquiring Circle — it would be taking control of USDC, instantly positioning itself as a dominant force across blockchains. That has major implications for stablecoin decentralization, competition, and trust.
And yes, the alarm bells are already ringing.
“This Would Be Disastrous,” Says MetaLeX’s Gabriel Shapiro
Gabriel Shapiro, founder of MetaLeX Labs, didn’t mince words. He called the possible acquisition “disastrous and anticompetitive,” warning that it could spark serious antitrust concerns.
“If a definitive agreement is signed, we’ll be at the DoJ’s and FTC’s doorstep,” he said, citing Ripple’s past campaigns against Bitcoin and Ethereum as red flags.
He even brought up the 2022 Ripple-Greenpeace campaign targeting Bitcoin mining — a move many saw as an attempt to undermine BTC. According to Shapiro, Circle’s board has a fiduciary responsibility (under the Revlon doctrine) to consider the legal risk of selling to Ripple.
The Numbers Behind the Bidding War
Ripple reportedly made an initial offer of $4–5 billion, which Circle rejected. But now, with Ripple’s estimated holdings at around $94 billion (based on ~$40B in XRP), the firm is expected to return with a stronger, possibly XRP-backed bid.
But that’s not without complications — Ripple would still need court approval to liquidate XRP reserves.
Meanwhile, Coinbase holds $8.5 billion in cash and over $2.8 billion in crypto. Yet surprisingly, it hasn’t made a public move yet.
Who Will Win — Ripple, Coinbase, or a Dark Horse?
Many insiders believe regulators are more likely to favor Coinbase, especially given Ripple’s rocky history with the SEC. Some sources even suggest that if Coinbase makes an offer, Circle would accept “in a heartbeat.”
Still, there’s always room for surprises. Japanese giant SBI Holdings, a long-time Ripple ally, could step in to shake things up.
Final Thoughts
This battle could reshape the stablecoin landscape overnight. Ripple gaining control of USDC would create major power consolidation — and possibly trigger legal pushback in the U.S. and abroad.
Gabriel Shapiro’s warning might sound extreme to some — but if he’s right, this could be one of those rare turning points in crypto history.
Let’s hope it turns out to be a good one.