The $10 billion acquisition proposal is met with skepticism, as Circle insists on an independent development path.
An astonishing acquisition drama is quietly unfolding among the giants of the cryptocurrency market. According to Bloomberg, blockchain payment company Ripple recently made an acquisition offer to stablecoin issuer Circle of up to $4 billion to $5 billion, but this staggering proposal was firmly rejected by Circle on the grounds that 'the offer is too low.'
This acquisition attempt comes less than 30 days after Circle applied for an IPO in the United States, showcasing Ripple's eagerness to secure a foothold in the stablecoin market. As the issuer of the $USDC stablecoin, Circle currently has a market capitalization of $61.7 billion and holds a significant position in the stablecoin market, giving Circle enough confidence to reject this deal.
Experts analyze that Circle's rejection of Ripple's acquisition proposal is not merely due to price issues. Circle sought a SPAC merger at a $9 billion valuation early on, and although that deal ultimately did not materialize, the market capitalization of $USDC and Circle's revenue have continued to grow since then. Last year, Circle reported annual revenue of $1.68 billion, while Ripple's offer was only about three times its revenue, which is indeed low for a high-growth fintech company leading the stablecoin market in multiple countries.
Regulatory compliance and strategic independence are key factors for Circle's rejection of the acquisition.
Circle's reputation for regulatory compliance is the cornerstone of its business model. In contrast, Ripple has been busy dealing with legal disputes with the U.S. Securities and Exchange Commission (SEC). Although Ripple has made some progress, Circle has been cultivating a 'regulatory-first' image for years, which does not depend on political changes in the White House.
Circle's priorities are clear: transparent reserves, open books, and proactive dialogue with legislators. An acquisition by a company viewed as a 'cryptocurrency rebel' could undermine the confidence of $USDC's largest institutional users, including hedge funds, family offices, and even banks that are open to stablecoins.
Another key factor is Circle's strategic independence. $USDC operates across multiple blockchains and integrates with numerous financial institutions, payment gateways, and crypto platforms. Accepting Ripple's acquisition offer would place $USDC under the control of a single entity with its own competitive interests.
Circle's management may worry that this could jeopardize their partnerships and undermine the competitive advantage of $USDC in widespread adoption. Additionally, Circle's shareholders, including major venture capital firms and $USDC alliance co-founder Coinbase, may believe that remaining independent and seeking an IPO could yield a higher long-term return than selling to Ripple at a valuation of $4 billion to $5 billion.
Sticking to the IPO plan, Circle aims to build the cornerstone of the digital financial ecosystem.
Circle submitted an IPO application to the New York Stock Exchange in early April 2025, making Ripple's acquisition proposal appear as if they were looking for a bargain, which Circle is not interested in.
For Circle, going public is not just about profit; it's about gaining regulatory clarity, increasing transparency, and becoming a trusted financial powerhouse. As a publicly traded company, Circle will adhere to rigorous reporting standards and enhance its credibility with institutional partners, regulators, and users.
Rejecting Ripple's acquisition proposal is a well-considered decision. Although the market is unpredictable and IPO valuations may not meet expectations, Circle's leadership remains steadfast. They are betting that the value of USDC and strategic independence will grow over time.
As the stablecoin market continues to gain mainstream adoption and the regulatory environment becomes clearer, Circle's bet on independence is likely to yield substantial returns. If the IPO is successful, they will be seen as visionary leaders; if not, they can still reconsider acquisition proposals at a higher price in the future.
Currently, Ripple has not decided whether to make a new acquisition proposal, but this event undoubtedly highlights the immense potential of the stablecoin market and Circle's significant position in the industry.
This content has been generated by Crypto Agent summarizing various sources, reviewed and edited by (Crypto City). It is still in the training phase and may contain logical biases or information discrepancies. The content is for reference only and should not be taken as investment advice.
'Worried the acquisition offer is too low? Circle boldly rejects Ripple: Don’t think you can buy us for fifty cents!' This article was first published in 'Crypto City'
