- Ripple has increased its offer to acquire Circle from $5B to $20B amid ongoing talks.
- The potential acquisition could reshape the stablecoin sector and Ripple’s market influence.
- Circle previously rejected a lower bid and is still pursuing an independent IPO in the U.S.
Ripple CEO Brad Garlinghouse has reportedly increased his acquisition offer for Circle to $20 billion, following Circle’s rejection of Ripple’s earlier bid, which was valued between $4 billion and $5 billion. According to sources, the initial offer was deemed too low by Circle executives. Despite the rejection, Ripple has remained interested in the stablecoin issuer and is now pursuing the deal with a higher bid.
Known for introducing the second-largest stablecoin, USDC, after Tether’s USDT, Circle has recently filed for its first public offering, a sign of its confidence in its market position. Earlier, Circle had been valued at $9 billion during its failed public listing attempt in 2022, making Ripple’s earlier bid appear less than its benchmark, prompting the company to revise its offer.
Ripple’s increased offer signals its broader ambitions, beyond a cross-border payment service. In December, Ripple launched its first stablecoin, RLUSD, a dollar-backed stablecoin. Acquiring Circle would enable Ripple to have a stronger foothold in the stablecoin industry and compete wth Tether and other big players.
The stablecoin market has become competitive in 2025. Ripple’s move suggests a desire to consolidate its influence across DeFi platforms and payment systems. With USDC’s wide adoption and institutional partnerships, Circle is an attractive target.
Notably, the market responded swiftly to the original $4-5 billion bid, following which XRP’s total valuation fell below $130 billion on May 1. The rest of the crypto market remained steady, but XRP’s dip reflected investor sensitivity to the acquisition talks.
Related: Ripple Takes the Lead with $1.25B Acquisition of Hidden Road
If the latest offer is accepted, it would mark one of the largest mergers in crypto history. A $20 billion valuation signals growing confidence in stablecoins and their role in global finance. However, regulatory questions remain as both companies have global footprints and play vital roles in the industry.
Brad Garlinghouse has previously criticized the proliferation of U.S. dollar stablecoins. According to him, one compliant option would be a better fit for the market. Ripple’s RLUSD aims to help fill that space, but USDC remains the dominant force. A merger would create a powerhouse that could reshape the market.
Neither company has confirmed a final agreement despite rising interest. Circle declined to comment due to its IPO quiet period, while Ripple has yet to release an official statement. However, insider reports suggest ongoing discussions that could soon provide an answer.
Ultimately, Ripple’s $20B bid marks a strategic pivot in reshaping the dynamics of stablecoin regulation, competition, and adoption globally. With around a $130 billion market cap in XRP and $61 billion more in USDC circulation, the stakes are high.
