Ripple, the enterprise blockchain company behind the XRP cryptocurrency, reportedly made a multibillion-dollar offer to acquire Circle, the issuer of the USDC stablecoin. According to reports from Bloomberg and other sources, Ripple’s bid was valued between $4 billion and $5 billion, but Circle rejected the offer, considering it too low given its current valuation and strategic plans (Bloomberg).
Background and Market Context
Circle is a leading figure in the stablecoin market, with its USDC stablecoin being the world’s second-largest stablecoin by market capitalization, currently valued at around $62 billion. USDC also ranks as the seventh-largest cryptocurrency overall. In contrast, Ripple’s own stablecoin, Ripple USD (RLUSD), launched last year, has a market capitalization of just over $300 million, making Circle a far larger competitor in the stablecoin space (CoinMarketCap data).
Circle recently filed for an initial public offering (IPO) in the United States in early April 2025, signaling its intent to grow as an independent public company rather than pursue a sale at this time. While Circle has not publicly commented on the acquisition rumors, its focus remains on the IPO process and expanding USDC’s adoption (SEC filings).
Ripple’s Strategic Intentions
Ripple’s bid to acquire Circle was widely interpreted as a strategic move to strengthen its position in the stablecoin market and gain control over the USDC ecosystem. Owning Circle would have allowed Ripple to compete more directly with other major stablecoins such as Tether’s USDT, and further integrate blockchain technology into traditional finance and cross-border payment systems (Ripple’s corporate statements).
Ripple CEO Brad Garlinghouse has described the company as being in an “acquisitive” phase, following its recent $1.2 billion acquisition of prime broker Hidden Road, which aims to scale XRP and the XRP Ledger’s activity. The attempted purchase of Circle would have been a significant step in this expansion strategy (Company press releases).
Reasons for Rejection and Future Outlook
Circle reportedly rejected Ripple’s offer primarily due to valuation concerns, as the bid did not reflect the company’s market value or growth potential, especially in light of its IPO ambitions. Additionally, Circle’s leadership appears committed to maintaining independence and continuing to develop USDC with a focus on transparency, regulatory compliance, and innovation (Industry analysts).
Regulatory considerations may also have influenced the decision, as a merger between two major crypto firms could attract heightened scrutiny from regulators worldwide, potentially complicating operations and delaying strategic initiatives (Regulatory experts).
Ripple remains interested in acquiring Circle but has not confirmed whether it will submit a revised bid. Meanwhile, Ripple continues developing its own stablecoin RLUSD and expanding its blockchain infrastructure, signaling a long-term commitment to competing in the stablecoin and broader crypto markets (Ripple roadmap).
Summary
Ripple’s reported $4 billion to $5 billion bid to acquire Circle was a bold attempt to gain a foothold in the stablecoin market by purchasing the issuer of USDC, one of the most widely used dollar-backed stablecoins. However, Circle rejected the offer as too low, opting instead to pursue its IPO and maintain independent growth. Ripple remains interested but has yet to make further moves, highlighting the competitive and strategic dynamics shaping the evolving stablecoin sector.
