$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.
