Ripple Eyes Circle in Ambitious Bid to Dominate the Stablecoin Market

In a bold move to strengthen its position in the rapidly growing stablecoin sector, blockchain payments giant Ripple reportedly made a multi-billion-dollar acquisition offer to Circle Internet Financial Ltd., the issuer behind the popular USDC stablecoin. According to sources cited by Bloomberg, Ripple proposed a deal valued between $4 billion and $5 billion. However, the offer was declined by Circle, with insiders suggesting the valuation was below expectations.

Ripple’s Strategic Interest in Circle

Ripple’s interest in acquiring Circle underscores its intent to scale its influence in the digital payments and stablecoin ecosystem. Although the initial offer was turned down, Ripple hasn't completely closed the door on a future bid. People familiar with the negotiations say Ripple remains keen on exploring potential opportunities with Circle. As of now, however, no new proposal has been officially submitted.

Due to regulatory sensitivities and legal obligations, both companies have refrained from public commentary. Circle, in particular, is in a quiet period as it prepares for its Initial Public Offering (IPO), limiting its ability to disclose any information regarding financial strategies or acquisition discussions.

Circle Focuses on IPO as Ripple Watches Closely

Circle has shifted its attention to public markets, having officially filed for an IPO in the U.S. A company spokesperson confirmed that due to its quiet period with the Securities and Exchange Commission (SEC), Circle is unable to discuss its corporate plans or acquisition-related matters.

Investors continue to keep a close eye on the stablecoin sector, especially as regulatory frameworks in the U.S. begin to take shape. Circle’s USDC currently boasts a market cap of over $60 billion, making it one of the most prominent stablecoins globally. In contrast, Ripple’s recently launched stablecoin, RLUSD, holds a modest market valuation of just over $300 million.

Ripple’s Broader Expansion Strategy

Ripple’s pursuit of Circle aligns with its broader strategy to expand aggressively across the digital finance landscape. Earlier this year, Ripple acquired Hidden Road, a multi-asset prime brokerage, for $1.25 billion, a landmark deal in the crypto space. This acquisition is expected to enhance Ripple’s capabilities in foreign exchange, digital assets, and fixed income products, further solidifying its infrastructure.

Ripple has also expressed optimism about evolving U.S. crypto regulations, which CEO Brad Garlinghouse has described as a “turning point” for the industry. According to Garlinghouse, regulatory clarity is paving the way for Ripple and other digital asset firms to innovate and grow. With both XRP and RLUSD in its portfolio, Ripple is clearly positioning itself to become a dominant player not only in blockchain-based payments but also in the stablecoin ecosystem.