Ripple’s $5B Bid for Circle Gets Cold Shoulder—Here’s Why Stablecoins Are the New Crown Jewels
Ripple just got a brutal reality check. Its $5 billion play for Circle—the powerhouse behind USDC—was swiftly rejected, proving even crypto giants can’t buy their way into the stablecoin throne.
The backstory: Circle’s USDC is the anti-volatility champ, a $30B+ lifeline for traders fleeing Bitcoin’s mood swings. Ripple wanted that stability—badly. But Circle’s sitting on a goldmine: regulatory goodwill, institutional trust, and a Fed-backed cash stash.
Why it stings: This isn’t just about ego. Stablecoins are eating traditional finance’s lunch—processing $10T+ annually while banks nickel-and-dime wire transfers. Circle knows its worth, and Ripple’s pocket change won’t cut it.
The kicker: Watch for Circle’s next move. IPO rumors are swirling, and Wall Street’s already salivating over ‘the PayPal of crypto.’ Meanwhile, Ripple’s left holding an empty bag—and a stark reminder that in 2025, cold hard stablecoins trump hype every time.
Ripple Offers $5 Billion To Buy Circle, Proposal Rejected
After launching RLUSD, a stablecoin pegged to the USD and backed primarily by U.S. Treasuries, Ripple is reportedly seeking to expand its footprint.
Yesterday, reports emerged that Ripple offered $5 billion to acquire Circle, the issuer of USDC, but the proposal was quickly rejected.
Currently, Circle is the second-largest stablecoin issuer, trailing Tether Holdings. It maintains a strong presence in the United States and Europe, where USDT recently exited due to MiCA regulations.
Unlike Tether, which has not released an audit from a top-four firm, Circle complies with laws and is registered with the U.S. Financial Crimes Enforcement Network (FinCEN). For transparency, Circle publishes monthly reserve attestations conducted by Grant Thornton.
What Is Circle And USDC? Why Was The Deal Rejected?
Insiders say the offer was rejected because it undervalued Circle’s market position and growth potential, which makes sense. Circle has been growing, with USDC expanding rapidly over the years.
In 2025, USDC plays an integral part in DeFi, powering trading, lending, and yield farming across blockchains like Ethereum and Solana.
Circle has also forged partnerships with major financial institutions like Visa and Mastercard, while BlackRock has chosen USDC as its preferred stablecoin for digital payments and remittances.
The stablecoin issuer is also preparing for an NYSE listing in the coming months.
Focus On XRP Crypto: Which Way Next?
It’s unclear whether Ripple will submit an improved offer. If Circle accepts, RLUSD could absorb USDC’s market cap and leverage Circle’s DeFi integrations and top-tier partners.
WOW!
RIPPLE CTO DAVID SCHWARTZ ABOUT ‚RLUSD‘ STABLECOIN:
"RLUSD WON‘T REPLACE XRP. #XRP HAS A UNIQUE ROLE ON THE DEX AS A BRIDGE ASSET!" pic.twitter.com/UbCAwkAlK4
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) December 11, 2024
This could propel the XRP crypto price, possibly pushing it above $3.50 and $10 by the end of the year. If Ripple acquires Circle, RLUSD, which feeds XRP, could drive demand higher.
Conversely, some believe the deal could diminish the role of XRP as a payment token.
Despite its features and a ruling that XRP is not a security, placing it in the same category as Bitcoin, which the SEC recognized as a commodity, XRP has struggled to gain traction. Only a few banks and payment processors use ODL in remittance since most of them prefer SWIFT.
Additionally, more global remittance payments are now routed through stablecoins, not XRP, and even some of the best cryptos to buy, like Litecoin or Stellar.
8 High-Risk High-Reward Cryptos for 2025
Ripple Offers $5B To Buy Circle, Bid Rejected: Focus on XRP Crypto
- Ripple offers $5 billion to buy Circle; bid rejected
- Circle is behind USDC, one of the largest stablecoins in the world
- USDC is regulated and approved in the EU
- Focus on XRP crypto and RLUSD
