Ripple reportedly proposed acquiring rival stablecoin provider Circle Internet Group Inc. for $4 billion to $5 billion. However, the offer was deemed insufficient and rejected, according to sources familiar with the matter.
Although Ripple continues to show interest in Circle, it has yet to decide whether to submit another bid, said the sources, who requested anonymity due to the confidential nature of the information. Meanwhile, Circle remains focused on pursuing its initial public offering, which it filed for earlier this month, the sources added.
In an emailed statement, a Circle spokesperson mentioned, “We do not comment on market rumors. As we are currently in a quiet period with the SEC, we cannot provide further details about our corporate financial plans. Our long-term objectives remain unchanged.”
A Ripple representative declined to provide any comments.
The proposal comes amid a surge in cryptocurrency dealmaking, driven by a rise in digital token values. This trend has encouraged several companies, including Circle, BitGo Inc., Gemini, and Bullish Global, to consider launching initial public offerings (IPOs) as early as this year, according to Bloomberg News. In April, Ripple finalized a $1.25 billion acquisition of the prime brokerage firm Hidden Road.
Circle is the issuer of one of the world’s leading stablecoins, cryptocurrency tokens linked to the US dollar or other currencies. These stablecoins are widely used by traders to transfer digital assets across exchanges and are increasingly adopted for transactions beyond the cryptocurrency sphere.
In December, San Francisco-based Ripple introduced its RLUSD stablecoin, which currently has a market value of approximately $316.9 million. In comparison, Circle’s USDC boasts a significantly higher market value of about $61.7 billion, as reported by CoinMarketCap.com.
