- Ripple’s $ 4 B-$5 B offer for Circle highlights growing competition in the stablecoin market amid rising demand for regulation.
- Circle turns down Ripple’s acquisition bid, citing undervaluation and focusing on its upcoming public market debut.
- Ripple’s acquisition of Hidden Road and launch of RLUSD signal its expanding ambitions in blockchain and stablecoin infrastructure.
Ripple Labs Inc. recently made an acquisition offer to buy stablecoin issuer Circle Internet Group for between $4 billion and $5 billion. However, the bid was turned down as Circle deemed the valuation too low, highlighting rising competition in the stablecoin market.
While Ripple remains interested in pursuing Circle, it has not yet submitted a revised bid. Circle, on the other hand, is concentrating on its anticipated public market debut, a move seen as a significant milestone for the $61.7 billion USDC operator, according to a post by CryptosRus. “We’re in a quiet period with the SEC and can’t comment,” a Circle spokesperson noted in a statement issued to Bloomberg.
Circle Eyes Public Markets as Ripple Diversifies
Earlier this month, Circle announced plans to go public, seeking broader capital exposure and transparency amid rising demand for regulated stablecoins. According to a report by Bloomberg, Ripple’s initial $4B–$5B offer was part of a broader strategy to expand its blockchain infrastructure portfolio and compete directly with dominant dollar-pegged assets.
Ripple launched its own U.S. dollar-pegged stablecoin, RLUSD, in December, with a current market capitalization estimated at $316.9 million. The token is fully backed and custodied in compliance with regulated frameworks, emphasizing Ripple’s commitment to institutional-grade asset issuance. According to executives, RLUSD is a foundational pillar in the firm’s multichain liquidity strategy.
Market Dynamics Drive High-Stakes M&A Activity
Circle’s USDC remains the second-largest stablecoin by market supply, behind Tether’s USDT, and plays a critical role in DeFi, remittances, and centralized exchanges. The stablecoin’s design, fully reserved and regularly attested, continues to position it as a preferred settlement layer for regulated financial entities.
Additionally, Ripple’s acquisition appetite appears to be growing. Just weeks before the Circle bid, Ripple announced a $1.25 billion deal to acquire prime brokerage firm Hidden Road, signaling continued M&A momentum. Both companies are at the center of intensifying dealmaking as crypto valuations rebound and tokenization strategies mature across the financial sector.
