Enterprise blockchain firm Ripple, the payments Fintech behind XRP and the newly launched RLUSD stablecoin, recently tabled a $4 billion to $5 billion offer to acquire Circle, the issuer of the world’s second-largest stablecoin, USDC, according to Bloomberg.
The bid, however, was swiftly rebuffed by Circle, which understandably deemed the valuation insufficient given its strategic position and growth trajectory in the rapidly evolving cross-border payments sector.
This rejection underscores the intensifying competition in the stablecoin market and highlights Circle’s confidence in its independent path forward, particularly as it prepares for an initial public offering (IPO).
Circle’s USDC, with a market capitalization exceeding $61 billion, has emerged as a key player in digital finance, facilitating more efficient cross-border transactions and enabling decentralized finance (DeFi) ecosystems.
The company’s recent launch of the Circle Payments Network (CPN) aims to connect financial institutions globally, leveraging USDC and other regulated stablecoins for real-time settlement of payments, remittances, and treasury operations.
This vision positions Circle as a transformative force in global payments, likely contributing to its decision to reject Ripple’s offer.
Analysts suggest the $4 billion to $5 billion bid undervalues Circle’s potential to dominate the stablecoin-driven payments space, especially as stablecoin adoption accelerates amid favorable U.S. regulatory shifts.
Ripple’s acquisition attempt appears strategically motivated by a desire to neutralize a formidable competitor and cement its dominance in the global payments sector.
With RLUSD, launched in late 2024 and now boasting a $316 million market cap, Ripple is vying for a larger share of the stablecoin market, traditionally led by USDC and Tether’s USDT.
Acquiring Circle would have granted Ripple control over USDC’s vast ecosystem, enhancing its cross-border payment solutions and institutional reach.
Ripple’s recent $1.25 billion acquisition of Hidden Road, a prime brokerage firm, further signals its aggressive expansion strategy, aimed at scaling XRP and RLUSD adoption within traditional finance.
Circle’s rejection aligns with its focus on an IPO, filed in April 2025, which could value the company at or above Ripple’s initial offer.
The IPO reflects Circle’s intent to capitalize on its $1.67 billion in 2024 revenue and expand USDC’s global footprint, including recent in-principle approval to operate in Abu Dhabi.
By going public, Circle aims to solidify its position as a compliant, transparent leader in the stablecoin space, potentially distancing itself from acquisition-driven consolidation.
Ripple, meanwhile, is navigating a post-SEC battle landscape, with its legal clarity fueling aggressive growth plans.
CEO Brad Garlinghouse has emphasized acquisitions over a public listing (for now at least), noting Ripple’s outdated $11 billion valuation.
The failed Circle bid, coupled with regulatory challenges, suggests Ripple will continue pursuing strategic deals to bolster its global payments infrastructure.
This latest offer from Ripple highlights the intense competition shaping the stablecoin market.
While Circle bets on its IPO and global business growth, Ripple’s acquisition-driven strategy underscores its intent to lead the digital payments evolution.