Ripple, which continues to actively strengthen its position in the crypto-financial sector, attempted to acquire USDC stablecoin issuer Circle for up to $5 billion. However, according to Bloomberg, the deal did not go through.
Acquisition Attempt Amid Circle’s IPO Plans
Ripple's interest in Circle emerged shortly after the latter filed paperwork for an IPO in the United States. This acquisition attempt, according to Bloomberg sources, aligns with Ripple’s broader strategy to increase its presence in the stablecoin market. Although there has been no official confirmation from the company, the offer was reportedly valued at up to $5 billion.
It is assumed that the offer was rejected due to not meeting Circle’s valuation expectations. It remains unclear whether Ripple plans to make another attempt. Neither company has provided comments.
Financial Metrics and Ripple’s Series of Deals
Ripple, which had a valuation of $11 billion as of 2024, has executed several major deals in recent months. In April, it acquired prime broker Hidden Road for $1.2 billion. According to an official statement, the goal of the deal was to expand infrastructure for XRP operations and activities based on the XRP Ledger network.
These steps reflect an aggressive growth model, through which Ripple aims to strengthen control in key segments of the crypto market.
Context: Legal Battles and Political Engagement
Ripple’s expansion comes after a partial resolution of its long-standing dispute with the U.S. Securities and Exchange Commission (SEC). In August 2024, a court found the company liable in a case initiated in 2020 and ordered it to pay $125 million. However, in March it was reported that the SEC would not appeal the ruling. Ripple later negotiated the penalty down to $50 million.
Amid its legal victories, Ripple has also stepped up its political involvement. According to media reports, Ripple CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty met with Donald Trump earlier this year. The company also donated $5 million to the inauguration fund and attended official events on January 20.
Stablecoin Market and Competitor Actions
While Ripple seeks to secure its place in the stablecoin sector, competitors remain active. Tether plans to launch a new U.S.-focused stablecoin in late 2025 or early 2026, depending on regulatory developments. Meanwhile, Tether continues to dominate the market, with USDT issuance reaching $150 billion.
According to projections from the U.S. Treasury Department, the total market capitalization of stablecoins could grow to $2 trillion by 2028. Against this backdrop, Ripple’s interest in expanding its stablecoin footprint appears to be a logical move.
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