Ripple allegedly made a $5 billion offer to acquire Circle, the second-largest stablecoin issuer, which the firm rejected.
Further reports suggest that Circle was not categorically opposed to buyout offers, but that a $5 billion offer was too low.
Did Ripple Try to Buyout Its Competition?
Multiple social media reports suggest that Circle rejected Ripple’s massive buyout offer. The major stablecoin issuer recently filed for an IPO but subsequently paused its plans after Trump’s tariff chaos.
Earlier reports from VanEck’s Matthew Sigel suggested that Circle’s planned IPO had a $4 to $6 billion equity valuation. So, it looks like Ripple attempted to match that valuation.
The planned IPO and current circumstances suggest that Circle may be open to acquisition offers in the future. After all, analysts have previously raised concerns about Circle’s financials.
Ripple’s executives, for their part, recently asserted that they have no plans to go public. However, the company has shown increasing interest in acquisitions.
Earlier in April, the firm acquired prime brokerage platform Hidden Road in a record $1.25 billion deal. So, its expansion plans are very evident.
Last year, Ripple entered the stablecoin market with RLUSD, an asset that directly competes with Circle’s USDC. Ripple’s RLUSD stablecoin market cap has been consistently increasing over the past 3 months, currently at $318 million.
The stablecoin has seen notable developments. RLUSD was recently integrated with Cardano and Chainlink
Under Trump’s pro-crypto shift, Ripple is seeing a major opportunity to achieve dominance in the US market. As the SEC lawsuit nears an end, the firm is seemingly eyeing an aggressive expansion strategy.
It would be a powerful business opportunity if the firm could take over Circle’s stablecoin expertise and market share. For now, it is unclear if any further negotiations will take place, or if any other firms will make larger offers.
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