A heavyweight news has emerged in the stablecoin market - Ripple has made a $4-5 billion acquisition offer for Circle Internet Group, which is currently advancing towards an IPO! Yes, you heard that right - it's Ripple, the company that just had the SEC drop its appeal and acknowledge that XRP is not a security, but this offer was reportedly rejected for being too low. It is said that Ripple remains very interested in Circle but has not yet decided whether to make another offer.
Why would Ripple, a well-known crypto company, make a business move to acquire Circle at this point in time? Will Circle ultimately say "Yes" or "No"? Forbes published an in-depth analysis of some "insider" information, and Odaily will now translate and compile the original text for your enjoyment.
Why Would Ripple Want to Acquire a Stablecoin Company?
Stablecoins require both scale and speed.
The news of Ripple's potential acquisition of Circle might seem unusual at first, but for industry insiders familiar with Ripple's corporate strategic layout, acquiring Circle is both unexpected and yet understandable.
In early April, Ripple acquired the brokerage firm Hidden Road for $1.25 billion and announced that it would use the RLUSD stablecoin as collateral for its primary brokerage products, moving its post-trade activities to the XRP Ledger blockchain. Ripple believes this acquisition has the potential to optimize costs and liquidity for its cross-border payment service Ripple Payments and provide custody services for Hidden Road's clients.
It's worth noting that Hidden Road has successfully obtained a broker-dealer license, which means this acquisition gives Ripple legal rights to approach traditional financial channels as an institution. XRP and RLUSD could potentially evolve into liquidity bridge assets for institutional trading execution, repo financing, and even sovereign debt swaps, opening doors for tokenized government bonds, central bank digital currencies, and RWA.
Clearly, Ripple's "ambition" has exceeded the crypto track, and its power tentacles are beginning to deeply embed into traditional financial infrastructure. Stablecoins pegged to legal tender are undoubtedly the best bridge connecting the crypto and traditional financial worlds.
In fact, Ripple's CEO Brad Garlinghouse had confirmed the stablecoin strategy as early as mid-2024 and announced the launch of RLUSD at the XRP Ledger community summit. After receiving approval from the New York Department of Financial Services (NYDFS), RLUSD was officially launched late last year, with a current market cap of around $316.9 million, marking a good start.
However, for the current stablecoin market with a market cap close to $245 billion, RLUSD's performance is lukewarm. Adopting a "steady" strategy seems difficult to keep up with rapidly developing competitors. Compared to USDT, which is approaching a $149 billion market cap, USDC with around $61.5 billion, or even USD 1, which recently broke through a $2 billion market cap shortly after launch, RLUSD's advantages are not obvious.
Therefore, Ripple's acquisition of Circle is not just about expansion, but more of an accelerated strategy that allows it to overtake competitors and quickly secure a place in the global stablecoin economy.
Will Circle Say "Yes"?
From Circle's perspective, being acquired is not a bad thing.
First, the massive funds are highly attractive. Ripple's $5 billion acquisition offer is very appealing. Such a scale of investment could significantly accelerate Circle's global expansion, with additional funds potentially driving deeper R&D and expanding Circle's partnership network, especially in markets where infrastructure and access are still forming.
Second, the synergy between Ripple and Circle could potentially create a "Win-Win" scenario. Ripple brings extensive experience in navigating complex global regulations and a time-tested blockchain network, while Circle already has rich stablecoin operational experience. Combining the two could spark the creation of entirely new financial products, such as tokenized payment systems, innovative cross-border settlements, and hybrid DeFi/TradFi solutions.
We must also not forget the geographical advantage, with Ripple having a comprehensive international footprint. Its network extends far beyond U.S. borders, with strong relationships in Asia, Latin America, and Europe. 90% of Ripple's business is conducted outside the U.S., and this influence could drive USDC into markets where stablecoin adoption is still in its early stages but growing rapidly.
Will Circle Say "No"?
Although Ripple might resubmit its acquisition offer, Circle has currently rejected the proposal, citing the offer as too low. Based on the latest developments, Circle's decision may involve three reasons: valuation, vision, and regulation.
In terms of valuation, USDC's market cap is now close to $62 billion, and with Circle's IPO plan in full swing, Ripple's acquisition offer at this point seems more like a "speculation". Circle is not a company seeking an exit, but is moving towards a broader stablecoin market future. The $5 billion acquisition may have underestimated not only Circle's financial situation but also the strategic importance of USDC in the continuously developing digital dollar landscape.
Secondly, Circle has a clear vision, and merging with a direct competitor could create friction. Although Ripple and Circle are both operating in the stablecoin field, RLUSD and USDC are not entirely consistent in governance models and market strategies. The acquisition might lead to a realignment of priorities, potentially weakening Circle's mission-driven approach to an open financial system.
Third, the regulatory perspective cannot be overlooked. The merger of two heavyweight companies in the crypto ecosystem will trigger stricter scrutiny from global regulators. Especially in the current environment - where U.S. legislators are actively defining the digital asset framework - this move could lead to serious operational slowdowns, legal complexities, and potential resistance from certain jurisdictions.
What Does Circle's Decision Mean for the Market and Stablecoins?
Circle's rejection of Ripple's acquisition is more than a story about price; it's a signal of belief - that Circle believes its independent strategy is stronger than a quick acquisition. As the IPO progresses, Circle is attempting to establish USDC as the global standard for U.S. dollar-backed stablecoins, doubling down on its reputation for transparency, compliance, and innovation.
Meanwhile, Ripple will not give up on the stablecoin market "pie". RLUSD is currently in its early life cycle, but Ripple's move indicates a long-term strategy aimed at integrating blockchain infrastructure with traditional finance. Whether through additional acquisitions, deeper ecosystem investments, or policy collaborations, Ripple will persist and fight to win.
It can be said that stablecoins are no longer a simple crypto tool, but are rapidly becoming a digital channel for global fund flows - a coveted power game where whoever controls stablecoin standards, access, and integration points will shape the future of cross-border payments, institutional-level DeFi, and programmable finance.
Power Game - Bigger Than Circle and Ripple
For leaders in fintech, digital assets, and global payments: market share alone cannot win the future. "Winning" is about ecosystem coverage, interoperability, and trust. The stablecoin race is far from over, and the true winners will be those who can boldly innovate while maintaining enough flexibility to adapt to regulations, market volatility, and global demands. Stablecoins are becoming the core pillar of the crypto ecosystem, and in the coming years, the integration, competition, and regulatory game around "compliant stablecoins + payment networks" will be the main theme.
Ripple's acquisition offer to Circle, seemingly just a transaction, reflects the maturity of the stablecoin ecosystem and the blurred lines between crypto-native innovation and institutional adoption, and more profoundly reveals the importance of strategic alignment when traditional finance meets crypto finance.
