Rejected acquisition offer signals growing competition between Ripple’s XRP and Circle’s USDC in the crypto payments race.
Ripple’s Multi-Billion-Dollar Offer to Acquire Circle Revealed
Ripple, a leading blockchain payments company based in San Francisco, reportedly made a $4–5 billion offer to acquire Circle Internet Financial, the firm behind the second-largest stablecoin, USD Coin (USDC). According to Bloomberg, Circle declined the proposal, choosing to continue its independent operations.
The attempted acquisition underscores Ripple’s urgent push to expand its presence in the rapidly growing stablecoin market, just as it prepares to launch its own U.S. dollar-backed digital asset.
Why Ripple Is Targeting the Stablecoin Sector
Stablecoins have become critical infrastructure in the crypto economy, facilitating faster payments, DeFi activity, and global remittances. Ripple’s XRP Ledger has long been used for cross-border settlements, but USDC—backed by real-world assets and integrated into major financial platforms—now commands a stronger market position.
Ripple’s interest in acquiring Circle appears to be a strategic shortcut to gain stablecoin market share, instead of building from the ground up.
Circle Rejects Buyout as USDC Strengthens Its Lead
Circle’s decision to reject Ripple’s offer suggests confidence in USDC’s market momentum. With a circulating supply exceeding $30 billion, USDC has become a staple in both centralized and decentralized finance.
Circle continues to grow its regulatory partnerships and expand USDC utility across global markets, solidifying its leadership in the fiat-backed digital asset space.
Is Ripple’s XRP Losing Ground to USDC?
The failed acquisition attempt raises concerns about XRP’s competitive position. While XRP remains relevant in cross-border blockchain solutions, it faces increasing pressure from more versatile and widely adopted stablecoins like USDC.
This development adds to speculation that Ripple may be trying to hedge against XRP’s waning dominance by entering the stablecoin arena more aggressively.
What’s Next for Ripple and the Stablecoin Market?
Ripple still plans to launch its own U.S. dollar-backed stablecoin later this year, aiming to tap into the growing demand for trusted digital payment solutions. However, catching up to Circle’s USDC will be a formidable challenge without a transformative acquisition.
As the battle for stablecoin dominance intensifies, strategic plays like this may shape the future of global crypto payments.
