Ripple’s attempt to acquire Circle in a $5 billion deal has officially failed, ending talks that could have reshaped the stablecoin market. Circle declined the proposed acquisition, signaling deep valuation and disagreements regarding strategic fit.
Jungle Inc. said Ripple’s offer likely included a significant portion of private equity rather than full cash. Circle found this structure unattractive, as Ripple’s shares are illiquid and not currently traded on public markets.
Strategic Conflicts and Financial Strength Undermined the Deal
In addition, Circle’s leadership saw potential conflicts with Ripple’s recently announced RLUSD stablecoin. As noted by crypto analyst Stellar Rippler, the acquisition could have been viewed as a move to absorb and neutralize USDC, which already leads to regulatory adoption and market trust.
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John Deaton highlighted that Circle held no interest in the deal because it was financially secure and aimed for an initial public offering. Circle continues to trade its pre-IPO shares at $40 while large institutions like BlackRock and Fidelity support its $5 billion valuation.
The deal would have given Ripple instant access to USDC’s established regulatory infrastructure. Platforms such as Visa, Robinhood, and Stripe already support USDC, providing Circle with a network Ripple hoped to leverage.
According to Stellar Ripple, Circle would not exchange its positional power for private shares of a competing company.
Although new talks could potentially develop, Ripple has not pursued another offer to acquire Circle since its initial rejection. Circle progresses independently with solid backing from institutions and continues to advance through established regulations.
Conclusion
The collapse of Ripple’s $5 billion offer highlights core issues around valuation, strategic overlap, and market control. While Ripple aimed to gain an edge through acquisition, Circle remained focused on preserving its lead and advancing toward a public listing.
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