USDC Issuer Circle has reportedly rejected an acquisition offer from Ripple. As per recent reports, Ripple made an offer worth between $4 billion and $5 billion to acquire Circle, its direct competitor in the stablecoin sector. While the offer was intended to match Circle’s estimated Initial Public Offering (IPO) between $4 to $6 billion, it did not satisfy the firm’s expectations.
Circle had previously sought IPO approval from the SEC intending to operate under the “CRCL” stock ticker on the New York Stock Exchange (NYSE). But, the firm halted its plans as macroeconomic instability stalled the stock and crypto market amidst new United States trade policies. Reports indicate that Circle could be potentially open to buyout offers but Ripple’s offer failed to reach the desired valuation.
Circle’s Rejection of Ripple’s Buyout Offer Due to Low Valuation
According to a report by Bloomberg on April 30, Circle allegedly denied a $4–$5 billion acquisition from Ripple. The report alleges that Ripple’s offer was too low, hence the rejection.
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Although Circle turned down Ripple’s acquisition attempt, there are speculations that the firm could be facing financial difficulties. This might push Circle to evaluate potential buyout offers in the future.
Circle holds a $700 million cash reserve while dominating the stablecoin sector through USDC. Data by Coinmarketcap shows that USDC has $61.52 billion in market capitalization. USDC’s second position rank in the stablecoin market makes Circle an attractive acquisition target for other industry leaders such as Ripple.
On the other hand, Ripple announced the release of its new stablecoin RLUSD recently. CoinMarketCap data shows that this coin has accumulated $316.87 million market capitalization. However, this is low compared to that of USDC. Ripple must thus continue its efforts to catch up with Circle and Tether which currently dominate the stablecoin sector.
Ripple Expands as Stablecoin Market Becomes Competitive
Despite the mainstream reports of their bid to Circle getting rejected, Ripple has not yet made any public comment regarding the matter. Rather, the firm continues its aggressive business expansion. In early April 2025, the firm purchased Hidden Road for $1.25 billion. This move highlighted Ripple’s commitment to grow through high-value deals rather than seeking an IPO.
In a recent interview with CNBC, Ripple’s President Monica Long stated that the company does not have future plans to seek public listing. The president also remarked that the company holds abundant cash resources and is only focused on developing strategic acquisition deals and partnership agreements.
Recent technical integrations with Cardano and Chainlink have helped RLUSD gain more market visibility. However, RLUSD still stands as a rather smaller player in the stablecoin market.
Future Outlook: More Crypto M&As on the Horizon
Ripple’s attempt to acquire Circle corresponds with a rising pattern of crypto organizations partnering with or buying out other firms; mergers and acquisitions (M&A). Additionally, the pro-crypto stance prevalent in Donald Trump’s administration has prompted other firms to explore IPOs. Among them, Kraken, Gemini and BitGo are seeking IPO listing in 2025.
Furthermore, the stablecoin market stands as one of the key sectors where various firms are engaging in intense competition. Thus, the attempted acquisition of Circle by Ripple reveals its desire to gain more dominance in this sector. With Circle still exploring a potential IPO, future acquisition deals might demand higher offers.
