*$10 Billion Deal Not Crazy": XRP Lawyer Weighs In on Ripple-Circle Acquisition Rumors*
The rumors surrounding Ripple's potential acquisition of Circle, the company behind $USDC , have taken another turn. $XRP advocate John Deaton shared his insights on the situation, highlighting the complexity of the deal.
*The Deal's Evolution*
Initial reports suggested a $5 billion offer from Ripple, but sources close to the talks indicate that the offer may have increased to $20 billion. Circle's IPO plans add to the complexity, with a targeted valuation of $4-5 billion.
*Circle's Valuation*
Deaton noted that Circle's rejected initial bid might be due to the company's higher valuation expectations, especially after going public. The company aimed for a $9 billion valuation in 2022 through a SPAC deal that didn't close.
*Regulatory Landscape*
The shifting US regulatory tone and growing political support for crypto might lead Circle to bet on a higher valuation. Ripple's interest in acquiring Circle could give them a significant foothold in the stablecoin market.
*Stablecoin Market Potential*
Projections suggest the global stablecoin market could reach $2.8 trillion in value within the next five years. With crypto regulation easing, stablecoins are becoming increasingly attractive.
*Ripple's Long Game*
The acquisition rumors demonstrate Ripple's strategic thinking and Circle's awareness of its value. As the regulatory landscape evolves, Ripple's move could be a calculated step towards expanding its presence in the stablecoin market.
