Ripple’s Pursuit of Circle: Inside the Multi-Billion Dollar Bids and Stablecoin Power Struggle

Circle's Soaring Valuation Fuels Tensions Over USDC and XRP

Ripple’s attempt to acquire Circle, the issuer of the USDC stablecoin, has become one of the most closely watched corporate dramas in crypto this year, with bid estimates ranging from $5 billion to a rumored $20 billion. According to several sources cited across industry reports, Ripple made an initial offer between $4 billion and $5 billion—an amount closely aligned with Circle’s current equity valuation of $4 to $6 billion, as assessed by VanEck’s Head of Digital Asset Research, Mathew Sigel. That offer was reportedly dismissed by Circle as “too low,” though the firm publicly labeled the reports as mere “market rumor.”

Unconfirmed sources suggest Ripple may have followed up with a substantially higher bid—reportedly as much as $20 billion. Neither company has publicly verified this number, but the revised offer underscores the escalating urgency Ripple appears to place on acquiring Circle. The timing is critical: Circle filed its S-1 registration with the U.S. Securities and Exchange Commission on April 1, signaling plans to go public under the ticker "CRCL" on the New York Stock Exchange. With JPMorgan Chase and Citigroup leading underwriting duties, the IPO is poised to draw institutional attention, potentially pushing Circle’s post-IPO valuation closer to or even beyond the $9 billion figure it previously aimed for during a failed 2022 SPAC deal.

This comes amid explosive growth for Circle’s USDC, which has seen its market capitalization jump from $43 billion to $62 billion since the start of 2025—a 44% increase in just four months. By contrast, its main competitor, Tether’s USDT, posted a more modest growth rate of 7.25%, climbing from $138 billion to $148 billion during the same period. Much of USDC’s momentum has been attributed to Circle’s aggressive push toward regulatory compliance, including its alignment with Europe’s MiCA framework and ongoing U.S. legislative developments like the proposed STABLE GENIUS Act. The company's recent launch of a cross-border payment product has also raised eyebrows across the crypto space, not least because the move seems to position Circle in direct competition with Ripple’s longstanding focus on international remittance.

Market observers are divided on the strategic motivations behind Ripple’s acquisition attempts. Some suggest the company is aiming to consolidate its position within the broader crypto payments ecosystem by absorbing potential competitors. Varsan Aljarrah, a well-known crypto investor, remarked that Ripple appears intent on “locking in all the liquidity corridors” and securing the infrastructure needed to elevate XRP’s role in the global financial system. Others remain skeptical. Simon Dedic, CEO of Moonrock Capital, sharply criticized the move, calling it “the ultimate example of ‘fake it till you make it’ on steroids.”

Complicating the situation further is Coinbase’s minority stake in Circle. If the exchange chooses to exert its influence, it could block any acquisition by Ripple outright, or at the very least, create significant friction. Such a move could even spark a direct bidding war between Ripple and Coinbase, raising the stakes and drawing additional regulatory scrutiny as stablecoins continue to gain prominence within financial markets.

Meanwhile, pro-XRP attorney John Deaton suggested that Circle’s rising market share, coupled with improving regulatory sentiment in the U.S., makes a $10 billion-plus valuation not only plausible but likely. Whether Ripple continues to chase Circle or recalibrates its strategy remains unknown, as the company has stayed silent on the matter. But one thing is clear: the stablecoin space is no longer just about tokens—it’s a battleground for infrastructure, influence, and institutional adoption.

This article has been refined and enhanced by ChatGPT.