$USDC Ripple CEO Brad Garlinghouse vehemently denied reports that the company attempted to acquire the USDC issuer Circle for up to $5 billion.
In this position, the digital currency executive dispelled weeks of speculation about the potential disruption in the stablecoin industry.
Ripple's CEO denies acquisition rumors amid stablecoin expansion
Speaking on stage at the XRP event in Las Vegas with Georgetown Law Professor Chris Broomer, Garlinghouse addressed the rumors directly.
"...the company [Ripple] never sought to acquire the stablecoin issuer Circle," he said, according to the introduction of the Crypto America podcast, Eleanor Terrett.
Broomer, who moderated the session, revealed key details about Garlinghouse's statement in a post on X (Twitter).
"Brad was clear that Ripple did not seek to acquire Circle," Broomer noted.
While one audience member suggested that Garlinghouse might have only denied a $10 billion offer, Broomer clarified in a measured tone but confirmed that Garlinghouse never considered an acquisition.
"Ripple may have made an offer at a different price. Maybe! Whatever the case, his main point was clear: he was not thinking about any acquisition," Broomer clarified.
This clarification challenges a series of reports that emerged over the past month. BeInCrypto reported on May 2, citing claims, without evidence, that Ripple made a $20 billion offer to acquire Circle. Another publication also noted that Circle rejected the acquisition because it was too low.
Rumors gained momentum amid Ripple's push towards stablecoins. In December, Ripple Labs received approval from the New York Department of Financial Services (NYDFS) for its stablecoin RLUSD.
RLUSD, a stablecoin backed by the US dollar, is designed to operate natively on the XRP and Ethereum ledgers.
Some analysts speculated that Ripple's acquisition of Circle would enable it to achieve immediate dominance in the stablecoin market, given Circle's existing infrastructure and the widespread use of USDC.
"Ripple's acquisition of Hidden Road indicates deeper ambitions," Broomer added in his summary.
Ripple's stablecoin RLUSD as a foundational layer for tokenized finance
The Georgetown Law professor also noted that RLUSD is being positioned as collateral on the ledger. This suggests that Ripple's stablecoin aims to be a foundational layer for tokenized finance rather than a direct competitor to USDC.
"Ripple places [RLUSD] as collateral on the ledger, documenting transactions on the XRP ledger," Broomer added.
At the same time, Circle charted a separate course. A week ago, the company officially filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). This move reinforces the stablecoin issuer's commitment to regulatory transparency and long-term independence.
Industry watchers had previously warned that a merger between Ripple and Circle could marginalize XRP. Specifically, the concern was that the merger would replace it with USDC as the default liquidity token. However, Garlinghouse's statements seem to put this scenario to rest.
Following this news, the price of XRP rose by about 3% in the past 24 hours and is trading at $2.25 as of this writing. Data on CoinGecko indicates that XRP is the best-performing asset among the top 18 cryptocurrencies.
At XRP Las Vegas, Garlinghouse also criticized the internal conflicts within the cryptocurrency sector, describing Ripple's recent donation of the "Satoshi Skull" as a "diplomatic gesture."
"I left with a sense that Ripple is not pursuing a world where cryptocurrencies replace traditional finance... [but] a world where both are integrated," Broomer concluded, reflecting on the tone of the conversation.
