Ripple Eyes Takeover of Stablecoin Giant Circle

Ripple, the digital payments firm best known for its XRP token, has reportedly quietly set its sights on one of the most influential companies in crypto: Circle, the issuer of the $60 billion USDC stablecoin. 

In recent weeks, Ripple approached Circle with an acquisition offer valued between $4 billion and $5 billion, a recent report from Bloomberg revealed. The bid was rebuffed. But the approach signals Ripple’s deepening ambition to expand its footprint in the fast-evolving stablecoin market — and possibly reshape it in the process.

Circle Charts Its Own Course

For now, Circle seems determined to forge its own path, having filed paperwork earlier this month for an initial public offering. This move places it among a cohort of crypto-related firms aiming to transition from the sometimes-turbulent digital asset markets to the established floors of public stock exchanges.

A spokesperson for Circle stuck to the script when asked about the potential deal. “We do not comment on market rumors,” citing the mandatory “quiet period” with the Securities and Exchange Commission due to the pending IPO. “Our long-term goals remain the same.”

Ripple Eyes Stablecoin Supremacy

This maneuver isn’t entirely out of the blue for Ripple. The company only launched its own dollar-pegged stablecoin, RLUSD, in December. 

While growing fast – its market value has climbed significantly to over $300 million – it remains dwarfed by Circle’s massive USDC. Snapping up Circle would have been a shortcut, instantly transforming Ripple into a leading force in the stablecoin arena.

Why try to acquire a direct competitor shortly after launching your own? For some observers, the answer lies in consolidation. 

“It’s not about competition — it’s about consolidation,” commented one industry watcher posting under the handle @StellarNews007 on social media. Acquiring Circle’s USDC, widely seen as the “institutional darling” and increasingly integrated with traditional finance, offered Ripple a potential “shortcut to liquidity dominance,” the commentator added, rather than facing the slow process of building adoption for its new RLUSD.

Ripple’s chief executive, Brad Garlinghouse, even telegraphed such intentions back in March. He mentioned that the company was becoming “more proactive in looking at acquisitions,” specifically mentioning an interest in “blockchain infrastructure companies.” 

Circle fits that bill perfectly. The reported bid suggests an ambition, as another commentator, @TheCryptoSquire, put it, to control significant financial “rails.”

Despite the initial rejection, reports suggest Ripple might still be interested, though whether another, higher offer is forthcoming remains uncertain. Circle’s refusal, however, speaks volumes. It signals a belief, perhaps, that it doesn’t “need to sell to win,” as @TheCryptoSquire speculated.

This reported, but failed, bid is likely just an “opening move,” as one observer noted, in a larger strategic game for control over the future shape of digital finance.

Read More

• 150 Billion Stolen Shiba Inu Tokens from Bitrue Hack Swapped, Laundered
• Shiba Inu Price Eyes $0.00003000 Resistance Amid Bitcoin Surge
• Bone Price Shows Positive Momentum Amid Strong Community Backing

Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.