XRP news today: Ripple Bids High for Circle Amid Stablecoin Market Push

Ripple, the San Francisco-based blockchain firm, has recently shifted its strategy to accelerate its growth in the cryptocurrency market. After acquiring Hidden Road, a prime brokerage, for $1.25 billion, Ripple is now targeting Circle, the issuer of USDC, the world’s second-largest stablecoin. This move comes as Ripple's own stablecoin, RLUSD, has not gained significant traction since its launch in December, with a modest market cap of $317 million compared to USDC's $61.5 billion.

Ripple's initial offer for Circle was in the $4–5 billion range, which was rejected. However, the company is reportedly bidding higher, indicating a strong interest in acquiring Circle. This acquisition would instantly propel Ripple into a leading position in the stablecoin market, but Circle's plans for an initial public offering (IPO) add complexity to the potential deal.

Ask Aime: What's the new direction for Ripple after acquiring Hidden Road?

Ripple's strategy appears to involve issuing a large number of tokens, retaining a significant portion for itself, and using the accumulated crypto wealth to acquire legitimate businesses. As of Q3 2024, Ripple held about 4.4 billion XRP, worth about $10 billion, plus another 38.9 billion XRP worth nearly $86 billion locked away in escrow. This approach suggests that Ripple's executives may be taking a long-term view, investing heavily in the hope of securing a dominant position in the market.

Meanwhile, Visa and Mastercard are also making significant strides in the stablecoin sector. Visa has partnered with Stripe-owned Bridge to launch stablecoin-linked Visa cards in six Latin American countries, allowing users to shop at any of Visa’s 150 million+ merchant locations using their stablecoin balances. Mastercard has introduced features that enable consumers to spend and merchants to receive stablecoins like USDC as easily as cash, through partnerships with crypto players including OKX, Nuvei and Circle. Both companies plan to expand these services to Europe, Africa, and Asia in the coming months.