- Ripple’s bid for Circle could open stablecoin access to crypto players shut out before.
- Hoskinson sees Ripple as a better fit than rivals to lead Circle and help the market grow.
- Circle still plans to go public while Ripple and Coinbase both aim to buy the company.
Charles Hoskinson, founder of Cardano, endorsed Ripple’s possible acquisition of Circle, saying it could challenge the industry’s centralized control. During a Sunday YouTube AMA, he claimed the deal would bring positive change to the space. He downplayed antitrust concerns, stating Ripple’s leadership would offer healthy competition against existing monopolistic influence.
Hoskinson argued that the crypto space suffers from a tight ecosystem involving Coinbase, Andreessen Horowitz (a16z), and Circle. He described it as a “self-serving” network that makes access difficult for outsiders. According to him, this group controls listings, liquidity, and even stablecoin access across major platforms.
Furthermore, Ripple and Coinbase have reportedly been competing to buy Circle, the issuer of USDC, the second-largest stablecoin globally. Andreessen Horowitz has also joined the race, adding to the competitive pressure.
Aiming to Disrupt the Coinbase-a16z-Circle Network?
Hoskinson suggested that Ripple’s control of Circle would add much-needed diversity to the sector. He pointed out that current conditions favor a few players. He also accused Coinbase of blocking competitors’ accounts, which he said limits listings and liquidity for rivals’ stablecoins.
He explained, “There’s like this Coinbase-a16z-Circle mafia where they’ve built an ecosystem… and if you are outside of it, you get completely blacklisted.” Additionally, he said, “It’s hard to get listed, it’s hard to get liquidity, and it’s hard to get a stablecoin.”
Ripple, known for its cross-border payment network, reportedly offered a $5 billion deal, but Circle rejected it, calling it too low. According to Hoskinson, the payments giant is prepared to raise its bid up to $11 billion. Still, Circle appears to be sticking to its plan of going public. It filed for an IPO in early April.
Related: Coinbase Makes History Joining the S&P 500 Index in May
Will Ripple’s Bid Challenge Centralization in Crypto?
Meanwhile, Gabriel Shapiro, founder of MetaLeX Labs, disagreed strongly with Hoskinson’s position. He warned that Ripple acquiring Circle could trigger a “crypto apocalypse.” Additionally, he said the deal may not clear antitrust hurdles due to concerns over the consolidation of power. Despite this, sources report that Ripple and Coinbase remain the top contenders for Circle’s acquisition. However, Coinbase is seen as having an edge because of its close ties with Circle. Still, rumors of acquisition talks continue while Circle maintains its IPO plan.
