Ripple Tried to Buy Circle for $5B And Got Turned Down

Edyme

May 1, 2025

Ripple reportedly offered to buy stablecoin issuer Circle for up to $5 billion, but the deal was turned down.

Background:

Ripple, the blockchain firm behind the XRP Ledger, reportedly made an acquisition offer of $4 billion to $5 billion to stablecoin issuer Circle, according to a Bloomberg report citing anonymous sources.
Circle is the company behind USDC, the second-largest dollar-pegged stablecoin in the market after Tether’s USDT. The offer was reportedly rejected for being too low.
The news comes shortly after Circle filed a prospectus for an initial public offering (IPO), marking another attempt to go public after a 2022 blank-check merger deal that valued the firm at $9 billion failed to go through.

Why should you pay attention?

Ripple is expanding its footprint in the stablecoin market, having recently launched RLUSD, its own U.S. dollar-pegged token.
A successful acquisition of Circle would have massively reshaped the stablecoin market, potentially altering the competitive dynamic between USDC, Tether, and other emerging tokens.
The report also comes as Ripple looks to scale its operations and navigate regulatory relief, following key developments in its legal battle with the U.S. SEC.

Who said what?

Bloomberg reported:

“Ripple has proposed a takeover of rival stablecoin provider Circle Internet Group Inc. for $4 billion to $5 billion, a bid that was rejected as too low.”

Adding:

“While Ripple remains interested in Circle, it hasn’t decided whether to make another offer.”

Brad Garlinghouse, CEO of Ripple, previously described the company’s $11 billion valuation as “outdated” and has been actively acquiring strategic firms, such as Hidden Road, a crypto prime broker it bought for $1.2 billion in April.
Regarding regulatory issues, Garlinghouse stated in March:

“The SEC plans to drop its appeal,” after Ripple agreed to pay a net $50 million settlement stemming from a case originally filed in 2020.

Zooming out:

The Circle rejection reflects broader valuation gaps in crypto mergers and acquisitions (M&A) discussions as companies reassess their public and private market worth amid shifting sentiment.
Ripple’s renewed interest in stablecoins and institutional expansion suggests it is aggressively positioning itself for the next phase of crypto adoption, particularly in payments and tokenized finance.
The outcome of its regulatory entanglements and ongoing lobbying efforts in Washington, including a $5 million donation to President Trump’s inauguration fund, may further influence Ripple’s long-term strategy, possibly paving the way for future acquisition plays like Circle.