Despite wielding its $11 billion market valuation as leverage, Ripple’s ambitious bid to acquire stablecoin issuer Circle has fallen flat, with the USDC creator rebuffing an offer reportedly between $4 billion and $5 billion as insufficiently compensatory for its market position.
The rejection comes at a particularly inopportune moment for Ripple, which has been aggressively expanding its crypto footprint since emerging from its protracted legal battle with the SEC—a saga that concluded with a relatively modest $50 million settlement (down from the initial $125 million liability).
Circle’s dismissal of what many would consider a generous proposal signals its conviction in USDC’s prospects as the second-largest dollar-pegged stablecoin in an increasingly competitive landscape.
Having previously entertained a $9 billion valuation during its abortive 2022 merger attempt, Circle evidently believes its IPO filing positions it for a more advantageous public market debut than Ripple’s acquisition terms would permit. Circle representatives have maintained a strategic silence, with a spokesperson stating they would not comment on market rumors as the company remains in a quiet period with the SEC.
The failed takeover bid follows Ripple’s successful $1.2 billion acquisition of crypto prime broker Hidden Road—a transaction that, while substantial, pales in comparison to the ambition demonstrated in approaching Circle.
Had the deal materialized, it would have fundamentally reconfigured the stablecoin ecosystem, potentially raising antitrust eyebrows while simultaneously creating a formidable challenger to Tether’s USDT dominance.
Ripple’s introduction of RLUSD, its native dollar-pegged token, now takes on heightened significance as the company’s Plan B for stablecoin market penetration. RLUSD offers significant technical advantages with its ability to process transactions at minimal fees of approximately $0.0002 while enabling 3-5 second settlements. According to industry sources, Ripple plans to launch its USD stablecoin within weeks as part of its strategic expansion efforts.
The question remains whether organic growth can achieve what acquisition could not, particularly as regulatory frameworks continue to evolve and institutional adoption accelerates.
For the broader crypto industry, this rejected overture represents another chapter in the ongoing consolidation narrative.
As traditional finance increasingly embraces blockchain technology, established players like Ripple must navigate between building and buying capabilities—a calculus complicated by valuation disparities, regulatory uncertainties, and the perpetual challenge of timing market entry.
Circle’s rebuff suggests that in the high-stakes poker game of crypto M&A, some targets simply won’t fold—regardless of the chips pushed across the table.
