Ripple, the blockchain company best known for its XRP token, recently made an acquisition offer to Circle, the issuer of the USDC stablecoin, with a proposed value between $4 billion and $5 billion. According to a Bloomberg report that cited anonymous sources familiar with the matter, the offer was turned down by Circle, which found the valuation too low. Despite the rejection, Ripple has not backed away from its interest in Circle. Reports now suggest that Ripple’s CEO, Brad Garlinghouse, has raised the offer to $20 billion, and the deal is likely moving toward completion.
Circle, which issues the world’s second-largest stablecoin after Tether’s USDT, has long been seen as a leading figure in digital finance. The company recently filed for an initial public offering, showing its intent to remain independent and confident in its current market strength. In 2022, Circle had been valued at $9 billion during an attempted public listing via a special-purpose acquisition company. This suggests that the initial offer from Ripple may have fallen short of Circle’s expectations. Ripple’s increased bid signals a more aggressive move to secure a larger position in the stablecoin market.
The stablecoin market has grown increasingly competitive in 2025. Ripple recently launched its own U.S. dollar-pegged stablecoin, RLUSD, indicating the company’s ambition to expand beyond cross-border payments and into other areas of digital finance. A potential acquisition of Circle would give Ripple greater control over a larger share of the stablecoin market and strengthen its offerings across decentralized finance and blockchain payment systems. For Circle, the interest from Ripple may reflect the company’s growing value and influence.
Following the initial rejection of Ripple’s offer, the market response was swift. XRP, Ripple’s token, saw its total valuation drop below $130 billion on May 1, 2025. While broader cryptocurrency prices like Bitcoin and Ethereum remained mostly unchanged, the XRP movement highlighted the high stakes and investor attention surrounding the takeover attempt.
If the deal closes at the new $20 billion valuation, it would mark one of the largest mergers in crypto industry history. It also raises questions about how regulators will respond, especially with stablecoins increasingly under global scrutiny. Both Ripple and Circle play major roles in the sector, and any merger would affect financial institutions, regulators, and the broader market.
As of now, neither Circle nor Ripple has issued an official statement confirming the final agreement. However, sources indicate that discussions are in advanced stages and that both parties are nearing a conclusion. If confirmed, this development will reshape the competitive structure of the stablecoin industry and signal a new phase of consolidation in the crypto sector.
