Ripple’s $5B Bid to Acquire Circle Rejected – Will It Make Another Offer?
In a significant move in the crypto world, Ripple's $4 to $5 billion acquisition offer has been allegedly rejected by stablecoin issuer Circle, the company behind USDC. The bid, which was intended to cement Ripple's dominance in the rapidly growing stablecoin market, was rejected due to concerns over valuation, as per a report from Bloomberg posted by VanEck's Digital Asset Research Head, Matthew Sigel.
Ripple's Ambitious Stablecoin Strategy
Ripple has been actively expanding its presence in the digital asset and stablecoin spaces. The company released its own stablecoin, RLUSD, in December 2023, which has since grown to a market capitalization of about $317 million.
But Circle's USDC is still a stablecoin market leader, with a market capitalization of over $61 billion. Ripple's bid to buy Circle is generally regarded as a strategic play to catch up on its pace and significance in the stablecoin game — one of crypto's most contested markets.
Circle Rejects Ripple's Bid
The offer was rejected by Circle, based on undervaluation, as per the report by Bloomberg. Although Circle hasn't made a public statement about the issue, sources indicate the company is at present in an SEC-mandated "quiet period" after it filed for its Initial Public Offering (IPO).
"Circle is keeping its eye on its long-term vision and how to become a public company," said a person familiar with the situation to Bloomberg.
This means that Circle is focusing on independence and a public market listing ahead of short-term acquisitions, even from established players such as Ripple.
Ripple's Acquisition Spree Continues
Ripple has not let up on its expansion efforts. Just last month, the company bought digital asset prime brokerage firm Hidden Road in a $1.25 billion transaction. The purchase was part of Ripple's broader effort to become a cross-border digital asset solution and stablecoin infrastructure leader.
Interestingly, despite RLUSD being designed for the XRP Ledger (XRPL), recent data shows that over 70% of RLUSD’s circulating supply is currently on Ethereum. This raises questions about Ripple’s network strategy and cross-chain priorities.
Industry analysts believe this could be a deliberate move to:
- Increase adoption speed
- Enhance interoperability with DeFi platforms
- Position RLUSD competitively across Layer-1 networks
Market Momentum and IPO Buzz
This Ripple–Circle tale breaks when crypto markets are bouncing back, and numerous large companies are considering IPOs. In addition to Circle, entities such as BitGo, Gemini, and Bullish are seen preparing for public listings.
The renewed bullish mood in the market might further accelerate consolidation, strategic investments, and public offerings in the coming months.
Also Read: Cardano Whales Accumulate $289M in ADA – But Price Still Below $0.70
Will Ripple Make Another Offer?
Although Ripple's initial bid has been turned down, insiders opine that a revised bid or different strategic alliance remains on the cards. With Ripple yet to put on the brakes in its quest for stablecoins dominance, the next few weeks could prove to be decisive in determining the fate of RLUSD and Ripple's wider ambitions.
