**Ripple’s $4–$5 Billion Offer to Acquire Circle Reportedly Declined Amid IPO Plans**
Blockchain payments company Ripple recently proposed a $4–$5 billion acquisition of Circle, the entity behind the USDC stablecoin, but the offer was rejected, as disclosed by unnamed sources in a Bloomberg report. The bid, which would have ranked among the crypto sector’s largest mergers, was reportedly dismissed as undervalued.
**Timing Follows Circle’s IPO Ambitions**
The rejection comes shortly after Circle filed for a U.S. initial public offering (IPO), a strategic move to bolster its standing in a competitive stablecoin market dominated by rivals like Tether (USDT) and DAI. Industry analysts suggest Circle’s pursuit of a public listing—which could yield a higher valuation—likely influenced its decision to spurn Ripple’s bid. Neither company has publicly addressed the reported negotiations.
**Ripple’s Strategic Push into Stablecoins**
The acquisition attempt aligns with Ripple’s broader agenda to expand its presence in payments infrastructure and digital currencies. Earlier this year, Ripple unveiled plans to launch an XRP-backed stablecoin and deepen institutional partnerships by 2025. Acquiring Circle, which oversees $32 billion in USDC circulation, would have fast-tracked Ripple’s entry into the stablecoin arena, granting access to Circle’s extensive user network and regulatory expertise.
**Market Implications and Regulatory Landscape**
A merger could have reshaped the crypto industry, consolidating Ripple’s position in U.S. regulatory frameworks while disrupting the stablecoin hierarchy. However, Circle’s IPO aspirations highlight a growing trend among crypto firms to pursue public listings for enhanced credibility and capital access. The rejection underscores the valuation divide between private acquisition offers and potential public market premiums.