No Deal: Circle Rejects Ripple’s Multi-Billion Dollar Acquisition Bid

Ripple’s reported $5 billion bid to acquire stablecoin giant Circle was rejected over valuation, strategic differences, and regulatory concerns, with Circle opting to stay independent as it advances toward an IPO. Ripple’s Ambitious Offer Falls Flat Ripple’s attempt to acquire stablecoin issuer Circle has reportedly been turned down, with insiders citing valuation concerns and strategic misalignment. According to a Bloomberg report dated April 30, Ripple extended a takeover bid valued between $4 billion and $5 billion — an offer Circle rejected for significantly undervaluing the company’s market position and future prospects. While Ripple has not disclosed whether it plans to revisit the offer, sources suggest no immediate follow-up bid is on the table. Circle’s Standalone Vision Remains Intact The rejection marks a pivotal moment for Circle, which has been actively positioning itself for a public listing. With USDC currently commanding a market capitalization of $61.7 billion, the firm’s leadership reportedly viewed Ripple’s bid as insufficient, both in terms of financial valuation and strategic alignment. Industry observers note that Circle’s long-term ambitions extend beyond immediate liquidity events. The firm has been steadily advancing toward an initial public offering (IPO) while reinforcing USDC’s status as a compliant, transparent, and globally recognized stablecoin. Accepting a takeover from Ripple, which is a direct competitor in the blockchain payments and stablecoin space, could have risked diluting Circle’s independent strategy. Regulatory Concerns Also a Factor Beyond valuation, regulatory complexities likely played a role in Circle’s decision. A merger between two major crypto firms would have attracted intensified scrutiny from global financial regulators, especially amid ongoing efforts to formalize digital asset frameworks. Given Ripple’s own legal history, including its long-running dispute with the U.S. Securities and Exchange Commission (SEC), the prospect of consolidating two heavyweight operations would have added legal uncertainty. In August 2024, a U.S. court found Ripple liable for $125 million in its case with the SEC, although a planned appeal was later dropped, leaving Ripple with a net $50 million penalty. Such entanglements, coupled with the regulatory spotlight on stablecoins, may have further dissuaded Circle from engaging in acquisition talks. Ripple’s Stablecoin Push Continues The failed acquisition bid underscores Ripple’s determination to expand its footprint in the stablecoin market. In late 2024, the company quietly launched RLUSD, which has since reached a market cap of $316.9 million. While it had a solid early showing, it remains a distant competitor to Circle’s USDC in scale and market reach. Ripple’s aggressive acquisition strategy was evident earlier in April, when it finalized the $1.2 billion purchase of prime broker Hidden Road, a move intended to bolster activity around XRP and the XRP Ledger. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

Source: Crypto Daily