Ripple’s Billion-Dollar Bid for USDC Maker Circle Rejected

Amidst a dynamic period for cryptocurrency mergers and market strategies, a significant acquisition attempt within the stablecoin sector has come to light. Reports indicate that Ripple Labs Inc. explored a major takeover of Circle Internet Group Inc., the company behind the prominent USDC stablecoin, signaling ambitious expansion plans.

Ripple’s Acquisition Bid Turned Down

According to sources cited by Bloomberg, Ripple proposed acquiring Circle for a substantial sum, estimated between $4 billion and $5 billion. However, this offer was reportedly declined by Circle, which apparently viewed the valuation as insufficient. Had the deal proceeded, it would have marked one of the most significant acquisitions in the digital asset industry.

While the initial bid was unsuccessful, sources suggest Ripple might still hold an interest in pursuing Circle, although no decision on a revised offer has been confirmed. In the meantime, Circle remains focused on its plans for a public market debut. The company filed preliminary paperwork for an Initial Public Offering (IPO) with the U.S. Securities and Exchange Commission (SEC) earlier this month.

Responding to the reports, a Circle spokesperson stated: “We do not comment on market rumors. As we are in a quiet period with the SEC, we cannot comment further on our corporate financial plans. Our long-term goals remain unchanged.”

Crypto M&A and Market Landscape

This potential deal occurs during a phase of heightened merger and acquisition (M&A) activity within the crypto ecosystem, largely fueled by the recovery in digital token values. Several other major crypto firms, including BitGo, Gemini, and Bullish Global, are also reportedly considering going public in the near future.

Ripple itself has been active in acquisitions. In April, the company finalized the purchase of Hidden Road, a prime brokerage firm specializing in digital assets, for $1.25 billion. This move is intended to enhance the positioning of Ripple’s own stablecoin, RLUSD, as collateral in brokerage operations and promote the use of the XRP Ledger for post-trade settlement processes.

Stablecoin Competition

Circle is a major player in the stablecoin market as the issuer of USD Coin (USDC). USDC is the second-largest stablecoin globally, boasting a market capitalization of approximately $61.7 billion, according to CoinMarketCap data. Stablecoins like USDC are digital tokens pegged to traditional currencies, typically the US dollar, used extensively in both crypto trading and increasingly in conventional transactions.

Ripple, based in San Francisco, introduced its own stablecoin, RLUSD, in December 2024. Its current market capitalization stands significantly lower, around $316.9 million, placing it far behind market leaders.

The rejected offer for Circle underscores Ripple’s strategic effort to solidify its position in the highly competitive stablecoin arena, which is currently dominated by Tether (USDT) and Circle’s USDC. For now, Ripple will need to explore alternative strategies to significantly expand its footprint in this crucial segment of the digital asset market.