Ripple’s $20 Billion Bid for Circle: Impact on USDC and the Crypto Market

Ripple’s reported $20 billion offer to acquire Circle, the issuer of the stablecoin USDC, has ignited discussions about the future of stablecoins and the strategic maneuvers of major industry players.

• Ripple’s $20B offer for Circle
• Circle’s IPO plans and valuation
• Coinbase’s stake and potential bidding war
• Impact on the stablecoin market

Ripple’s Acquisition Offer

Ripple, known for its payment solutions, has reportedly upped its acquisition offer for Circle to a staggering $20 billion. However, this figure seems to be met with raised eyebrows and skepticism. Dom Kwok, co-founder of EasyA, questions the feasibility of such a high valuation, suggesting that the initial offer of $4-5 billion aligns more closely with Circle’s valuation history and market expectations. In the world of crypto, where valuations can swing wildly, it’s no surprise that such a figure might be seen as more of a strategic bluff than a serious bid. But hey, in the crypto space, who knows? Maybe Ripple’s just playing 4D chess!

Circle’s IPO Plans

Circle is preparing for its initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker “CRCL.” An IPO, for those new to the game, is when a company decides to go public, offering its shares to the public for the first time. Circle filed its S-1 registration with the U.S. Securities and Exchange Commission (SEC) on April 1, 2025, aiming to go public this summer. The involvement of heavyweights like JPMorgan Chase and Citigroup as lead underwriters signals the growing integration of traditional finance with the crypto sector. Circle’s IPO is expected to target a valuation between $4 billion and $5 billion, a figure that seems more grounded compared to Ripple’s alleged offer. Yet, Circle has its sights set higher. During a failed SPAC merger (that’s a Special Purpose Acquisition Company, for those keeping score at home) in 2022, Circle aimed for a $9 billion valuation. Pro-XRP lawyer John Deaton notes that Circle expects its post-IPO value to be close to or above that mark.

“Circle filed its S-1 registration with the SEC on April 1, 2025, planning to go public on the New York Stock Exchange (NYSE) under the ticker ‘CRCL.'” – John Deaton

“Circle rejected the $5B offer because it expects its post-IPO value to be higher, possibly close to or above that $9B mark.” – John Deaton

Coinbase’s Role

The plot thickens with Coinbase’s existing minority stake in Circle. This could potentially lead to a bidding war, adding another layer of complexity to Ripple’s acquisition attempts. Coinbase’s involvement underscores the competitive dynamics within the industry, where major players are vying for control over key assets like Circle and its stablecoin, USDC. It’s like a high-stakes poker game, but with more blockchains and fewer poker faces.

Market Implications

The potential acquisition of Circle by Ripple, if it were to happen, could significantly impact the stablecoin market. It would represent a major move by Ripple to expand its influence in this space, especially given the regulatory environment’s potential shift towards more favorable conditions for cryptocurrencies. However, the skepticism around the $20 billion offer suggests that the real battle might be fought over a more realistic valuation, with Coinbase’s stake adding an extra twist to the tale. Meanwhile, Ripple has been managing its XRP liquidity strategically. In May 2025, the company unlocked 1 billion XRP from escrow, a standard practice, but then locked 700 million XRP back into escrow before releasing the 1 billion XRP. This move indicates a careful approach to managing its cryptocurrency assets amidst its acquisition efforts. In the world of crypto, where every move can be a strategic play, Ripple’s actions are a masterclass in liquidity management.

Regulatory Environment

Deaton’s insights shed light on Circle’s business decisions and the broader regulatory environment favoring cryptocurrencies. He notes that Circle rejected Ripple’s initial offer because it anticipates a higher valuation post-IPO. Furthermore, Deaton points to the potential passing of the STABLE GENIUS Act as a factor that could justify a higher valuation for Circle. This proposed legislation aims to regulate stablecoins, requiring issuers to maintain reserves, segregate funds, and undergo federal oversight if they hold over $10 billion in assets.

“The regulatory shift in favor of crypto, with pro-crypto policies and the possible passing of the STABLE GENIUS Act, as signs that a $10B+ deal wouldn’t be unrealistic.” – John Deaton

The STABLE GENIUS Act, if passed, could set a precedent for future stablecoin regulations, affecting not only Circle but the entire stablecoin ecosystem. This could be a critical factor for investors considering Circle’s IPO. While Bitcoin maximalists might scoff at the idea of stablecoins playing a significant role in the crypto revolution, there’s no denying that stablecoins like USDC fill a niche that Bitcoin alone can’t serve. They provide stability and ease of use that are crucial for mainstream adoption, even if they don’t align perfectly with the ethos of decentralization and privacy.

Key Takeaways and Questions

• What is Ripple’s current offer for Circle?

  Ripple reportedly increased its offer to $20 billion, though experts like Dom Kwok question its feasibility.

• Why did Circle reject Ripple’s initial offer?

  Circle rejected the $4-5 billion offer because it expects a higher valuation post-IPO, possibly close to or above $9 billion.

• When is Circle planning to go public?

  Circle plans to go public in the summer of 2025 on the NYSE under the ticker “CRCL.”

• Who are the lead underwriters for Circle’s IPO?

  JPMorgan Chase and Citigroup are the lead underwriters.

• What is the STABLE GENIUS Act and how does it relate to Circle’s valuation?

  The STABLE GENIUS Act is proposed legislation that could favor crypto valuations, potentially justifying a higher valuation for Circle post-IPO.

• How might Coinbase’s stake in Circle affect Ripple’s acquisition attempts?

  Coinbase’s minority stake in Circle could lead to a bidding war, complicating Ripple’s acquisition efforts.

• What was Circle’s valuation goal during its failed SPAC merger in 2022?

  Circle aimed for a $9 billion valuation during its failed SPAC merger in 2022.

• How could Ripple’s acquisition of Circle impact the stablecoin market?

  Ripple’s acquisition could significantly influence the stablecoin market, potentially expanding Ripple’s influence and affecting market dynamics.

• What are the potential regulatory changes that could affect Circle’s valuation?

  The potential passing of the STABLE GENIUS Act could favor crypto valuations, impacting Circle’s post-IPO valuation.