Ripple Makes Power Play: $20B Offer to Acquire Circle Shakes Up Crypto

Ripple just dropped a bombshell—a $20 billion all-cash bid to buy Circle, the powerhouse behind USDC. If this goes through, it’ll be the biggest M&A deal in crypto history. Talk about betting big on stablecoins.

Why now? Ripple’s sitting on a war chest after its legal wins, and Circle’s USDC dominance makes it a prime target. But let’s see if regulators—who still treat crypto like a Wild West saloon—actually greenlight this.

One thing’s clear: Ripple’s not playing defense anymore. They’re going all-in to control the rails of cross-border payments. Just don’t ask how they’ll recoup that $20B—maybe by printing their own stablecoin?

Ripple accusation spree

This comes as Ripple acquired Hidden Road for $1.25bn last month as part of a broader strategy. Hidden Road is a non-bank prime brokerage that processes $3 trillion per year for over 300 institutional clients. Ripple noted that the deal would help Hidden Road scale infrastructure, using its balance sheet to expand global clearing services.

Upon finalization, the acquisition would make Ripple the only crypto-native company with a global multi-asset prime broker. This strengthens Ripple’s role in mainstream finance and sets the stage for institutional trading of digital assets like XRP.

Pro crypto attorney John Deaton stated that Hidden Road’s scale and influence may make Ripple a dominant force in crypto prime brokerage.

RLUSD integration signals broader utility shift

The launch of RLUSD is in line with Ripple’s bid for Circle and further underlines its stablecoin push. RLUSD offers dual functionality in Ripple’s payment and investment ecosystem and serves both institutional payment needs and DeFi access.

RLUSD is integrated directly into Ripple Payments, providing faster and less expensive cross-border settlements. This addition is designed to distinguish it from other stablecoins, with particular regard to compliance and real-world adoption. Currently, its market capitalization has gone over the $300 million mark.

Ripple has expanded RLUSD’s reach to the Middle East, a region now known for the fast adoption of blockchain technologies. According to the company, 40% of regional enterprises currently use Ripple for digital asset custody. RLUSD’s compliance-first design aligns with regulations on the local level, allowing Ripple to strengthen its relationship with institutional partners through their trust.

Ripple CEO Brad Garlinghouse has hinted at his company’s IPO and said its 2024 valuation of $11 billion is outdated. A successful IPO or significant legal clarity would be needed before any acquisition of Circle. 

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.

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.

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