The Stablecoin issuer Circle has declined a takeover proposal from Ripple, which is valued between $4 billion and $5 billion. The rejection decision comes as the firm intends to proceed with its planned initial public offering (IPO), which was filed with the U.S. Securities and Exchange Commission earlier this month.
Circle Declines $5B Proposal
According to Bloomberg, Ripple approached Circle in late April with an acquisition offer in the $4 billion to $5 billion range, seeking to accelerate its stablecoin ambitions. Ripple’s interest in Circle centers on the opportunity to increase its stablecoin market share as it expands beyond its XRP business.
The report highlighted that Circle’s board concluded Ripple undervalued the company, especially in light of USDC’s market cap exceeding $61 billion earlier in the year. A spokesperson declined to comment, noting the firm’s quiet period with the SEC prevents detailed discussion of its corporate financial plans, but reaffirmed that its long-term goals have not changed.
Meanwhile, the development comes after Circle filed an S-1 registration statement with the SEC earlier this month regarding its intent to list on the New York Stock Exchange under the ticker “CRCL”. In the filing, the firm disclosed $1.68 billion in revenue for 2024 and net income of $157 million, primarily driven by reserve yields on its USDC stablecoin operations.
Ripple Eyes Stablecoin Market
Ripple’s recent effort to acquire Circle’s USDC business is part of its ongoing strategy to establish a foothold in the stablecoin market. In April 2024, the firm launched its U.S. dollar-backed stablecoin, RLUSD, making it a rival to Tether and Circle.
To bolster RLUSD’s on-chain functionality, Ripple partnered with Chainlink in January 2025 to provide reliable price oracles on Ethereum and the XRP Ledger. The oracle is a major component for decentralized finance (DeFi) applications seeking to use RLUSD as collateral or for lending markets.
Beyond that, Ripple’s $1.25 billion acquisition of prime broker Hidden Road in April 2025 is another move to secure its stablecoin utility. Hidden Road will use RLUSD as collateral in its brokerage products, enabling Ripple to penetrate traditional financial channels and drive corporate demand for its stablecoin.
Meanwhile, on the other hand, Circle relocated its headquarters to One World Trade Center in New York City, aiming to align closely with the traditional financial sector ahead of its public listing.
