Ripple Reportedly Offered To Buy Stablecoin Issuer Circle For $5 Billion

Ripple Labs, the blockchain payments firm behind the XRP cryptocurrency, has made a bold move to acquire Circle Internet Financial, the issuer of the USDC stablecoin, for a reported $4 billion to $5 billion, according to a Bloomberg report. The offer, however, was rejected by Circle, which deemed it too low, highlighting the high-stakes race for dominance in the rapidly growing stablecoin market.

The proposed acquisition comes as Ripple seeks to bolster its position in the stablecoin sector, where it recently entered with the launch of its own Ripple USD (RLUSD) stablecoin in December 2024. RLUSD has achieved a market capitalization of approximately $316 million, a modest figure compared to Circle’s USDC, which commands a towering $61.7 billion market cap, making it the second-largest stablecoin behind Tether’s USDT.

Strategic Ambitions Behind the Bid

Ripple’s interest in Circle is seen as a strategic effort to gain a stronger foothold in the stablecoin market, which has surpassed $241 billion in total market capitalization. Acquiring Circle would provide Ripple with immediate scale, leveraging USDC’s established network and institutional partnerships with firms like BlackRock and BNY, which manage its reserves. Analysts suggest that combining Ripple’s global payment infrastructure with Circle’s stablecoin expertise could lead to innovative financial products, such as enhanced cross-border settlement systems and hybrid DeFi-TradFi solutions.

Ripple’s recent acquisition of prime brokerage Hidden Road for $1.25 billion in April 2025 underscores its aggressive expansion strategy, fueled by its substantial holdings of XRP, valued at approximately $10 billion outright, with an additional $86 billion in escrow. This financial firepower positions Ripple to pursue high-profile acquisitions, but Circle’s rejection suggests a valuation mismatch. Circle is reportedly targeting a $5 billion valuation for its upcoming initial public offering (IPO), filed in April 2025, which aligns with its previous valuation during an abandoned SPAC merger in 2022.

Circle’s Focus on IPO and Independence

Circle has remained steadfast in its pursuit of a public listing on the New York Stock Exchange under the ticker “CRCL.” The company, which generated $1.67 billion in revenue in 2024 but only $156 million in profit due to high distribution costs, views the IPO as a path to enhance transparency and trust in the stablecoin space. A Circle spokesperson declined to comment on “market rumors” but reaffirmed the company’s commitment to its long-term goals, noting it is in a quiet period with the SEC.

Industry observers speculate that Circle’s rejection of Ripple’s offer stems from more than just valuation concerns. Strategic misalignment and regulatory complexities may have played a role, especially given Ripple’s history of legal battles with the U.S. Securities and Exchange Commission (SEC), which concluded in August 2024 with a $50 million net payment following a $125 million liability ruling. A merger between two major crypto players could invite heightened regulatory scrutiny, particularly as global frameworks for digital assets are still evolving.

Speculation of a Bidding War

While Ripple has not confirmed plans for a follow-up offer, unverified reports on X suggest the company may have raised its bid to as high as $20 billion, though Circle has denied being for sale. Additionally, Fortune reported that Coinbase, Circle’s long-time partner in the Centre Consortium, is also engaged in informal acquisition talks, potentially valuing Circle at $5 billion or more. These claims remain unconfirmed, and Circle’s focus on its IPO suggests it prioritizes independence over a sale.

Crypto enthusiast Amelie, known as Crypto Barbie on X, commented, “Ripple buying Circle is not for the financials. It curbs competition, controls USDC, dominates the stablecoin market, sidelines smaller rivals, and takes over Circle’s payment network that will be fueled by an IPO.” While speculative, such sentiments reflect the crypto community’s view of the deal’s potential to reshape the industry.

Implications for the Stablecoin Market

The failed bid underscores the competitive dynamics of the stablecoin sector, where USDC and RLUSD vie for institutional and retail adoption. Stablecoins, pegged to fiat currencies like the U.S. dollar, are increasingly used for cross-border payments, DeFi applications, and as collateral for derivatives, with recent CFTC pilots highlighting their growing role in traditional finance. Ripple’s RLUSD, integrated into its global payment system, aims to challenge USDC’s dominance, but acquiring Circle would have provided an instant shortcut to market leadership.

As Circle advances toward its IPO and Ripple continues its acquisition-driven growth, the stablecoin market remains a battleground for innovation and influence. Whether Ripple revisits its offer or Circle succeeds in going public, the outcome will likely shape the future of digital finance.