Ripple May Acquire Circle, the Creator of USDC Stablecoin
Date: 2025-05-02 Author: Gabriel Deangelo Categories: BUSINESS
According to anonymous sources, Ripple offered Circle management to buy the company for $4 billion to $5 billion. However, this offer was rejected, as Circle management considered it too low. In this regard, Ripple has not made a new offer, and Circle is currently planning to conduct an initial public offering (IPO), which was announced in April.
Circle representatives have neither confirmed nor denied information about negotiations with Ripple, citing the fact that they do not intend to comment on rumors. However, according to the announced plans, the organization plans to achieve a capitalization of $4-5 billion during the IPO, which supports the theory of possible negotiations with Ripple.
USDC is currently the second-largest stablecoin in the market with a market cap of $61.5 billion. While Ripple's stablecoins (RLUSD) are only ranked 12th by market cap, which may explain the company's interest in acquiring Circle. In such a case, Ripple would be able to eliminate one of its largest competitors in the stablecoin market.
In 2022, when the Circle merger with Concord Acquisition Corp was discussed, Circle's market cap was valued at $9 billion, which was twice the value of the company's assets in 2021. Although the deal did not happen then, there is a possibility that Circle expects to receive approximately this amount in the event of a possible acquisition of Ripple.
So, although the deal between Ripple and Circle has not yet happened, the plans of both companies will continue to evolve, and this situation may affect the future of the stablecoin market as a whole.
