XRP news today: Ripple's $20 Billion Bid for Circle Aims to Expand Stablecoin Market Share

Attorney John Deaton, a prominent advocate for XRP, has shared his thoughts on Ripple's reported efforts to acquire Circle, the issuer of the stablecoin USDC. Deaton noted that Ripple initially offered $5 billion for the company, but Circle declined the offer. According to Deaton, Ripple has since increased its bid to $20 billion, indicating the company's ambition to expand its role in the stablecoin market and bolster the positions of both RLUSD and XRP.

Circle's decision to reject Ripple's initial offer is likely due to its anticipation of a higher post-IPO valuation. The company filed its S-1 registration with the U.S. Securities and Exchange Commission (SEC) on April 1, 2025, with plans to list on the New York Stock Exchange under the ticker “CRCL.” Circle is working with major financial institutions as lead underwriters and aims for a valuation between $4 billion and $5 billion, which is lower than the $9 billion valuation it sought during a failed SPAC deal in 2022. This suggests that Circle believes its market value will increase further, potentially exceeding the $9 billion figure, especially with favorable regulatory developments and renewed institutional interest in digital assets.

The political and regulatory climate in the U.S. has become more supportive of crypto initiatives. The Trump administration has adopted a more open stance toward digital assets, and the proposed STABLE GENIUS Act is expected to provide a clearer framework for stablecoin issuers. This regulatory environment contributes to the expectation that Circle’s IPO could unlock higher valuations, making a future acquisition even more costly.

Ripple's enhanced $20 billion bid reflects its broader ambitions in the stablecoin sector. The company launched RLUSD, its stablecoin, in December, and by acquiring Circle, it would immediately expand its influence through USDC, currently the second-largest stablecoin. This would benefit RLUSD and XRP by embedding them deeper into mainstream financial ecosystems. Though Circle has not confirmed the $20 billion bid, the implications are significant. Such an acquisition would be one of the largest in crypto history and could shift the balance of power among stablecoin providers. Ripple would gain market share and strategic infrastructure that could enhance its cross-border payment services and digital asset offerings, and increase the adoption of XRP, RLUSD, and Ripple’s payment services.