Ripple Ups Circle Acquisition Bid to $20 Billion to Boost Stablecoin Ambitions

Ripple has raised its offer to acquire Circle to $20 billion, seeking control of USDC, the second-largest stablecoin. The acquisition would give Ripple a competitive edge in the stablecoin market and boost RLUSD adoption. Ripple plans to enter the top five stablecoins by the end of 2025. The deal will likely face regulatory scrutiny, but acquiring USDC would establish Ripple as a major player in the stablecoin market.

Ripple has significantly upped its offer to acquire Circle, the company behind the second-largest stablecoin, USDC, to $20 billion. This move underscores Ripple's ambition to gain control over USDC and boost its own stablecoin, RLUSD, positioning itself as a major player in the stablecoin market. The acquisition would provide Ripple with a competitive edge and potentially help it enter the top five stablecoins by the end of 2025.

The initial bid was reported to be around $5 billion, but sources close to the talks suggest that the offer has now escalated to $20 billion [1]. Ripple's interest in acquiring Circle is driven by the potential to leverage USDC's established market share and accelerate its global payment solutions. With USDC holding a market value of $61.7 billion, dwarfing Ripple's RLUSD at $316.9 million, the acquisition would significantly enhance Ripple's presence in the stablecoin space [2].

Circle's recent filing for an initial public offering (IPO) adds complexity to the situation. The company aims to list on the NYSE under the ticker "CRCL" with a valuation targeting $4-5 billion [1]. This valuation is close to Ripple's initial offer but may have been rejected because Circle believes it is worth more, especially after going public. Circle's plans for an IPO reflect a growing trend in crypto where companies are increasingly seeking traditional financial routes to scale [2].

The global stablecoin market is projected to reach $2.8 trillion in value within the next five years, driven by regulatory advancements and market developments [2]. Stablecoins like USDC and Ripple's RLUSD provide a reliable bridge between volatile digital assets and traditional finance. The Treasury Borrowing Advisory Committee (TBAC) has acknowledged stablecoins as a "new payment mechanism," potentially impacting the $6.4 trillion T-Bill market [2].

Ripple's move to acquire Circle is part of its broader strategy to embed itself deeper into traditional financial infrastructure. The company recently acquired Hidden Road, a prime brokerage platform, for $1.25 billion, signaling its intention to move beyond crypto rails [3]. Owning Circle would provide Ripple with an instant seat at the table in the global stablecoin economy, potentially leading to the creation of new financial products and accelerating global expansion.

However, the acquisition is not without challenges. Circle's decision to reject Ripple's initial offer may have been due to valuation concerns, differences in vision, and regulatory scrutiny. Circle believes its standalone strategy is stronger than a fast-track acquisition and is positioning USDC as a global standard for dollar-backed stablecoins [3]. Ripple, meanwhile, is playing a long game, aiming to shape the future of cross-border payments, institutional DeFi, and programmable finance.

The deal will likely face regulatory scrutiny, as a merger of two heavyweights in the crypto ecosystem would trigger heightened scrutiny from global regulators. The current climate of lawmakers actively defining digital asset frameworks adds complexity to the potential acquisition [3].

In conclusion, Ripple's $20 billion bid for Circle is a strategic move to gain control over USDC and boost its stablecoin presence. The acquisition would provide Ripple with a competitive edge in the stablecoin market and potentially help it enter the top five stablecoins by the end of 2025. However, the deal will likely face regulatory scrutiny and challenges from Circle's valuation and vision.

References:
[1] https://u.today/10-billion-deal-not-crazy-xrp-lawyer-reacts-to-ripple-circle-usdc
[2] https://www.altcoinbuzz.io/cryptocurrency-news/ripples-5b-circle-bid-fails-stablecoin-future-in-play/
[3] https://www.forbes.com/sites/digital-assets/2025/04/30/why-ripples-5-billion-offer-to-circle-was-more-than-a-power-play/