Ripple’s $5B Bid for Circle Crashes Like a Bad Stablecoin Peg

Ripple just learned the hard way that not all crypto deals moon—Circle slapped a ’rejected’ stamp on their $5 billion acquisition offer faster than a trader dumping a shitcoin.

The would-be marriage of two payments giants collapses: Ripple wanted Circle’s USDC dominance, but Circle’s playing hardball (or just remembers how often regulators sue Ripple).

Meanwhile, Wall Street bankers weep into their $1,000 salads—another fat advisory fee slips away because crypto firms still think they can ’disrupt’ M&A too.

In brief

• Ripple offered up to 5 billion to buy Circle.
• Circle prefers an IPO despite declining revenues.
• RLUSD remains far behind USDC in market capitalization.

A 5 Billion Offer on the Table… Refused

Behind the scenes, the information had been circulating for several weeks. Ripple attempted a big move:. The goal was clear: to accelerate its presence in the stablecoin sector and overshadow.

But Circle said no.

According to Bloomberg,. A cold shower for Ripple. And a symbolic snub, as Circle had just filed its IPO application. The issue is not only financial, it is also strategic. Because, plays in the giants’ league.

On Ripple’s side, issuer of the XRP cryptocurrency, they are digesting this. “We have plenty of liquidity, so we remain in acquisition mode“, had warned Monica Long, Ripple’s president. And the numbers back her up: the company just announced the.

Rumors are buzzing: Ripple might come back for another try. But Circle, for now, prefers to follow its own plan. “We do not comment on market rumors“, a spokesperson simply responded.

The Shadow of Wall Street and Investor Pressure

Behind this acquisition attempt, the entire stablecoin ecosystem resonates.is not an ordinary company. It is about to become the. The entry ticket?according to Matthew Sigel, with valuation multiples worthy of the tech industry: up to 38 times earnings.

But the company is not free from criticism. In 2024,, but its EBITDA dropped by 29%. This is due, among other things, to rising operational costs and expensive partnerships – notably with Coinbase and Binance.

“Circle experienced temporary losses but maintains a solid base with continued revenue growth“, Sigel specifies on X.

Yet, in this environment of slowed growth, Ripple sensed an opportunity. Because if the IPO is delayed or fails, a door might open again.

Meanwhile,. Tether remains the undisputed leader, but USDC is firmly established in second place. RLUSD, meanwhile, struggles to emerge. And that is the whole issue: for Ripple, acquiring Circle was to take a strategic shortcut. The shortcut to dominance.

Behind the Deals, Radically Opposed Visions

This confrontation between Ripple and Circle mainly reveals two visions of the sector. Ripple proceeds without any intention of going public. “We have enough cash. The IPO is not a priority“, confirmed Brad Garlinghouse, Ripple’s CEO, as early as October 2024.

Circle, on the other hand, plays the card of transparency and regulation. Despite uncertainties, despite a “crypto storm” shaking valuations, it continues to believe in the potential of a public issuer. A risky bet, but one that could set a precedent.

And the differences don’t stop there. Ripple favors massive acquisitions and a vertical strategy. Circle, on its side, wants to expand its services while retaining control. In the background, American regulators, long hostile, now seem more open. Enough to revive ambitions… and rivalries.

By rejecting Ripple’s offer, Circle didn’t just refuse a check. It sent a message. But the war is far from over. Other offers could come. Other giants could enter the arena. And above all, the market is waiting. Because this battle is not only fought on numbers, but on trust.

Despite market turmoil, Circle continues to aim for an IPO. The IPO, initially planned for early April, has been postponed. While awaiting calmer days, all eyes turn to the next phase of the battle.

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