Ripple’s $5 Billion Bid to Acquire Circle Rejected Amid IPO Plans
Ripple Labs’ attempt to acquire stablecoin issuer Circle for up to $5 billion has reportedly been turned down, according to an April 30 report by Bloomberg. The blockchain payments firm had offered between $4 billion and $5 billion for Circle, the issuer of USD Coin (USDC) — the world’s second-largest stablecoin by market cap.
The move appears to have been part of a broader strategy to deepen Ripple’s role in the stablecoin space, but Circle dismissed the offer as insufficient. Sources close to the matter told Bloomberg that Ripple has not yet decided whether it will make another bid.
The rejection comes just weeks after Circle filed for an initial public offering (IPO) in the U.S., signaling the company’s intent to remain independent as it prepares for public listing.
Ripple Eyes Stablecoin Market Amid Recent Acquisitions
The failed takeover bid follows Ripple’s April acquisition of prime brokerage firm Hidden Road for an estimated $1.2 billion. The company described the deal as instrumental in expanding XRP and XRPL activity within institutional markets.
While Ripple’s valuation was pegged at $11 billion in 2024, CEO Brad Garlinghouse has called that figure “outdated”, hinting at growth beyond prior estimates. An acquisition of Circle would have given Ripple an immediate footprint in the stablecoin market, an area dominated by Circle’s USDC and Tether’s USDT.
Legal Pressures Easing for Ripple
The bid comes at a time when Ripple is emerging from years-long legal battles. In August 2024, the firm was found liable for $125 million in a U.S. Securities and Exchange Commission (SEC) case dating back to 2020. But in a notable turn of events, the SEC dropped its appeal in March, resulting in a reduced net settlement of $50 million.
Garlinghouse and chief legal officer Stuart Alderoty reportedly met with former President Donald Trump prior to this legal de-escalation. Ripple was also a $5 million donor to Trump’s inauguration fund, and its executives were official guests at the January 20 event.
Despite the legal win and a strong acquisition track record, Ripple’s failure to secure Circle may signal that the stablecoin space remains tightly held by incumbents preparing to go public rather than merge.
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