Blockchain payments company Ripple made a multibillion-dollar move to acquire stablecoin issuer Circle, but was turned down. According to Bloomberg reports released on April 30, Ripple bid between $4 billion and $5 billion in an attempted takeover of Circle.
The stablecoin issuer rejected the offer. Circle reportedly considered the bid too low for the company’s value.
The rejection came less than 30 days after Circle filed for an initial public offering (IPO) in the United States. This timing suggests Circle may be focused on its public market strategy rather than acquisition offers.
Ripple is now reported to have increased its offer to purchase Circle, the issuer of USDC, from $5 billion to over $20 billion. The higher valuation is under active negotiation, according to Bloomberg sources. If confirmed, the deal would shift the balance of power in the global stablecoin market. Ripple’s move to acquire Circle would give it control of USDC, the world’s second-largest stablecoin.
„Any potential Circle acquisition is still in the shadow of Ripple’s legal mess with the U.S. Securities and Exchange Commission. As the SEC lawsuit nears an end, clarity around Ripple’s regulatory status is crucial in boosting further growth.” – according to mitrade.com
After the deal gets finalized, Ripple will have the most control over two prominent stablecoins in RLUSD and USDC, as well as institutional clearing and global payment rails. „This would position Ripple in the middle of the emerging digital finance ecosystem.” – mitrade.com concluded.
Banking 4.0 – „how was the experience for you”
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