Key Takeaways
- Circle has rejected Ripple’s $5 billion bid for USDC issuer Circle, intensifying uncertainty around Ripple’s stablecoin strategy amid ongoing IPO plans.
- Ripple is interested in acquiring Circle but has not decided whether to submit a new offer.
- As Circle (USDC) pursues IPO path instead of XRP acquisition, Ripple remains “Acquisitive” following the $1.25 billion Hidden Road deal.
XRP issuer Ripple Labs reportedly placed a $5 billion bid for USDC issuer Circle, but Circle has rejected it, calling the figure too low.
According to a report on Bloomberg, Circle rejected that offer from its key competitor in the stablecoin sector, stating that it believed the offer undervalued the company. This came at a time when the USDC issuer had filed to launch an initial public offering (IPO) in the US in early April 2025.
XRP Has Been On an Expansion Bid
Sources familiar with the ongoing development told Bloomberg that Ripple was still interested in the bid for USDC issuer Circle but had yet to make another offer. Ripple Labs was in the news recently after the San Francisco-based blockchain payment company launched RLUSD stablecoin, which has a market capitalization of $300 million, compared to USDC’s market capitalization that’s over $60 billion.
Ripple Labs, the firm behind cryptocurrency XRP, has been on an expansion bid recently, following the emergence of favorable cryptocurrency regulations in the US and the end of its long-standing legal battle with the US Securities and Exchange Commission SEC. Before placing the $5 billion bid for USDC issuer Circle, Ripple acquired Hidden Road for $1.25 billion, marking one of the largest deals in the digital assets sector.
The Next Phase of Digital Asset Adoption
The deal with Hidden Road has made Ripple Labs the first company to own and operate a global, multi-asset prime broker. Hidden Road offers prime broker services across foreign exchange, digital assets, derivatives, swaps, and fixed income. Brad Garlinghouse, CEO of Ripple, said:
“We are at an inflection point for the next phase of digital asset adoption—the US market is effectively open for the first time due to the regulatory overhang of the former SEC coming to an end, and the market is maturing to address the needs of traditional finance.”
Future Acquisitions “On the Table”
Commenting on the acquisition, Michael Higgins, the International CEO of Hidden Road, described the deal as a natural fit. Higgins also highlighted the growing demand for the prime brokerage firm’s services. He stated:
“We are fortunate to have 20 times more demand for balance sheets than supply at Hidden Road […]. By partnering with Ripple […], we can immediately solve the supply and demand issue for Hidden Road’s existing clients, expand our capacity to service our pipeline, and continue to scale.”
Ripple’s $5 billion bid for the USDC issuer Circle comes hot on the heels of the stablecoin company, which is filing a new prospectus for its IPO. According to a 2022 SPAC deal attempt, Circle was valued at around $9 billion, and it’s the world’s second-largest stablecoin issuer after Tether’s USDT, meaning it’s a rival to the newly launched RLUSD token. While Ripple remains quiet about the bid for USDC issuer Circle, CEO Brad Garlinghouse indicated that future acquisitions were “on the table.”
Conclusion
As Ripple pushes its bid for USDC issuer Circle and the second largest stablecoin issuer goes ahead with its market evaluation and IPO plans, the XRP issuer’s bid suggests a strategic urgency besides hinting at friction in executing that strategy. With altcoin sentiment already rattled by regulatory delays, the timing of Ripple’s bid and its rejection amplified the pressure on XRP price action in the days ahead.
Frequently Asked Questions
What is the USDC Circle?
USDC is a stablecoin, or digital dollar, issued by Circle and running on many of the world’s leading blockchains. The stablecoin represents US dollars on the internet and is backed 100% by highly liquid cash and cash-equivalent assets, so it’s always redeemable 1:1 for USD.
