XRP news today: Ripple Offers $4-$5 Billion for Circle, Aims to Boost Profit Margins by 50%

Ripple has reportedly made an offer to acquire Circle, the company behind the USDC stablecoin, for a sum between $4 billion and $5 billion. This potential acquisition has been characterized as a "stablecoin superplay" by crypto researcher SMQKE, who outlined the transformative potential of such a deal for Ripple and the broader digital asset ecosystem.

Circle's recent IPO filing revealed significant structural weaknesses, despite generating $1.68 billion in revenue in 2024, its net income was only $156 million. One of the primary reasons for this profitability gap is that Coinbase continues to receive 50% of USDC’s reserve revenue. This arrangement has remained in place even after Circle reportedly paid $210 million in stock to acquire Coinbase’s stake in Centre, the consortium that governs USDC. This has been described as a "massive profit leak" that burdens Circle’s margins and operational flexibility.

In contrast, Ripple's multi-stream revenue model includes XRP sales to institutional investors, cross-border transaction fees, interest income from loans, and investment returns. Ripple’s business model appears to be more streamlined and financially efficient as it doesn’t have to share a large portion of its revenue with outside partners, unlike Circle, which still gives 50% of its USDC reserve income to Coinbase.

The potential acquisition would allow Ripple to absorb Circle’s revenue base while using its own infrastructure to optimize operational efficiency. By renegotiating or eliminating the Coinbase revenue-sharing deal, Ripple could substantially enhance Circle’s profit margins. Additionally, integrating USDC into Ripple’s existing services — specifically RippleNet and Liquidity Hub — would bring regulatory-strengthened stablecoin functionality into Ripple’s payment and liquidity ecosystem.

This merger would also give Ripple direct access to over $60 billion in circulating USDC, significantly boosting scale and presence across global markets. The synergy between XRP and USDC, with XRP’s speed and liquidity utility combined with USDC’s regulatory acceptance, would create what was described as a “two-token juggernaut.”

Ripple is in a strong position to carry out a deal like this, having already faced and overcome major legal challenges with the SEC. This track record gives the company added credibility at a time when regulatory compliance is becoming more important in the digital asset space. Meanwhile, Circle — despite its strong market position — appears weighed down by costly legacy partnerships and is facing renewed scrutiny as it prepares to go public.

If the acquisition were to proceed, Circle would gain more than just capital. Circle would benefit from Ripple’s operational maturity, legal strength, and direct integration into decentralized finance. These advantages could offset Circle’s vulnerabilities and accelerate its evolution from a stablecoin issuer to a fully embedded component of a larger payments and liquidity ecosystem.