Ripple (XRP) and Coinbase are in the midst of a bidding war for stablecoin issuer Circle, which reports suggest is up for acquisition.
Earlier this year, Ripple offered Circle $4 billion, which was swiftly rejected by the stablecoin issuer.
In the meantime, Circle is going forward with plans to go public. Coinbase seems prepared to acquire Circle, but CEO Brian Armstrong has stated, “In terms of other deals we might consider in the future, I mean, that, of course, would be up to them.”
Could Ripple or Coinbase acquire Circle after billions thrown into a bidding war?
Coinbase and Ripple have both expressed interest in buying out Circle, the issuer of the regulated and popular USDC stablecoin.
Ripple’s $4 billion offer was rejected earlier this year as Circle pushes forward with plans for an IPO on US stock exchanges.
Speaking on acquiring Circle, Brian Armstrong, CEO of Coinbase spoke on Bloomberg saying Coinbase would be up for negotiations and that the terms would be up to them and the firm: ““in terms of other deals we might consider in the future, I mean, that, of course, would be up to them and us, but, you know, nothing to announce today.”
If Ripple were to win their bid for the company, the firm may utilize Circle’s strong institutional connections and the regulatory strength of the USDC token and apply it to RLUSD.
Ripple would become holders of the largest regulated stablecoin, affording them enough power to pursue their SWIFT-like payments plans with sharp efficiency.
For Coinbase, Circle, and the crypto exchange both formed the Centre Consortium in 2018, “to provide the governance and standards for the future digital financial ecosystem.”
There was a time when Coinbase and the USDC stablecoin were almost interchangeable based on how closely the two companies worked together with industry compliance and Coinbase’s support of the USDC token on their platform.
After Circle’s IPO, the tides could turn
If Ripple were to acquire Circle, XRP tokens could be sold to help fund the buyout, causing the price of XRP to suffer in the short term.
Ripple’s acquisition of Hidden Road for $1.25 billion shows the firm is more than capable of making large purchases that also support Ripple’s underlying XRP Ledger and cryptocurrency.
Analysts believe Circle’s IPO will go forward, with a buyout being more likely once the IPO has passed.