Stablecoin titan Circle being targeted for takeover by Ripple Corporation
In a move that could reshape the stablecoin market, Ripple, the digital payments firm behind the XRP token, has reportedly approached Circle, the issuer of the $60 billion USDC stablecoin, with an acquisition offer valued between $4 billion and $5 billion.
The news, if confirmed, would instantly transform Ripple into a leading force in the stablecoin arena. However, Circle has declined the offer, signalling a belief that it doesn't "need to sell to win," as @TheCryptoSquire speculates.
The founder of Circle, Jeremy Allaire, was last mentioned in connection with a potential acquisition by Ripple around mid-2025 during Circle’s notable business developments. This reported, but failed, bid is likely just an "opening move" in a larger strategic game for control over the future shape of digital finance.
Ripple's deepening ambition to expand its footprint in the stablecoin market is evident in its recent launch of its own dollar-pegged stablecoin, RLUSD. The company's CEO, Brad Garlinghouse, mentioned in March that Ripple is becoming "more proactive in looking at acquisitions," specifically mentioning an interest in "blockchain infrastructure companies."
Industry watcher @StellarNews007 comments that Ripple's acquisition of Circle's USDC could provide a "shortcut to liquidity dominance" rather than building adoption for RLUSD. On the other hand, Circle is determined to forge its own path and has not commented on the potential deal due to a quiet period with the Securities and Exchange Commission related to its pending IPO.
Despite the initial rejection, Ripple might still be interested in acquiring Circle, but whether another, higher offer is forthcoming remains uncertain. Circle fits that bill perfectly, as another commentator, @TheCryptoSquire, notes, given its significant market value compared to Ripple's RLUSD.
Ripple's long-term goals remain unchanged, with the company aiming to control significant financial "rails." The acquisition of Circle would undoubtedly help Ripple achieve this goal, but for now, both parties remain silent on the matter.
Meanwhile, Circle has filed paperwork for an initial public offering, placing it among crypto-related firms aiming to transition to public stock exchanges. This move could provide Circle with the financial resources to compete effectively in the rapidly evolving digital finance landscape, whether or not a deal with Ripple materialises.
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