Ripple’s reported $5 billion bid to acquire Circle, the issuer of USDC, has been rejected for being too low, according to a Bloomberg report on April 30. The attempted acquisition highlights Ripple’s ambition to expand its influence in the rapidly growing stablecoin market, especially as Circle prepares for a U.S. initial public offering (IPO). While Ripple has yet to confirm the bid, the move aligns with its broader strategy to solidify its position in the digital asset ecosystem following years of regulatory challenges and aggressive expansion efforts.
Why Ripple Pursued Circle
The attempted acquisition followed Circle’s U.S. IPO filing, highlighting Ripple’s focus on stablecoins’ rising importance. Stablecoins like USDC are vital for DeFi, payments, and institutional use. Acquiring Circle could have strengthened Ripple’s position in this key market. It also would have complemented Ripple’s XRP and ledger offerings.
Ripple’s recent acquisition spree underscores its growth ambitions. Earlier in April, the company purchased prime brokerage firm Hidden Road for $1.2 billion, enhancing trading activity related to XRP. This strategic push comes as Ripple emerges from years of legal headwinds, having settled its long-standing dispute with SEC in August 2024. The settlement, which saw Ripple agree to pay $50 million, marked a turning point for the company, allowing it to focus on expansion and innovation.
Circle’s Rejection and Ripple’s Next Steps
While Ripple’s $5 billion offer was deemed insufficient, it remains unclear whether the company plans to submit a revised bid. Circle, valued at over $9 billion following its IPO filing, likely seeks a higher valuation given its prominence in the stablecoin market. Both companies have declined to comment on the report, leaving the future of their potential partnership uncertain.
Ripple’s interest in Circle reflects the intensifying competition within the stablecoin space. Tether, the dominant player with its $150 billion USDT, is also planning to launch a new U.S.-focused stablecoin by late 2025 or early 2026, depending on legislative progress. Meanwhile, the U.S. Treasury predicts that the stablecoin market cap could surge to $2 trillion by 2028, underscoring the sector’s importance in the global financial system.
Ripple’s Growing Influence
Ripple’s aggressive expansion extends beyond acquisitions. The company has been actively engaging with political circles, including meetings between CEO Brad Garlinghouse and U.S. President Donald Trump earlier this year. Ripple also contributed $5 million to Trump’s inauguration fund and was represented at official events in January. These efforts suggest Ripple’s desire to position itself as a key player in shaping the future of digital assets and blockchain regulation in the U.S.
Conclusions
Ripple’s rejected $5 billion bid for Circle highlights the intense competition and strategic maneuvering within the stablecoin market. The rejected deal highlights Ripple’s ambition to expand in the digital asset ecosystem. With regulatory clarity improving, Ripple’s next steps are highly anticipated. The growing stablecoin market keeps industry eyes on their strategy.
Whether Ripple revisits its offer for Circle or explores other opportunities, one thing is clear: the race to dominate the stablecoin landscape is heating up, and Ripple is determined to play a leading role.
