Ripple has reportedly raised its acquisition offer for Circle, the issuer of USDC, to $20 billion, following a previously rejected lower bid. The new proposal indicates a serious interest from Ripple in gaining stronger control in the stablecoin space.
Circle had earlier declined an offer between $4 billion and $5 billion, finding the valuation insufficient given its market position. The company is known for issuing USDC, the second-largest stablecoin after Tether’s USDT, and recently filed for an initial public offering.
That move suggested Circle’s desire to remain independent and signaled confidence in its valuation, previously placed at $9 billion in a 2022 SPAC deal.
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The increase in Ripple’s offer highlights a major strategic shift for the blockchain firm. With the recent launch of RLUSD, Ripple’s dollar-pegged stablecoin, the company appears to be expanding beyond cross-border transactions into the broader digital finance ecosystem.
Acquiring Circle would give Ripple access to a mature infrastructure and strong regulatory relationships, particularly in the U.S. market.
🚨BREAKING: @Ripple’s CEO – Brad Garlinghouse, has increased the offer to acquire CIRCLE for $20 billion and the deal seems to be progressing towards completion.
This acquisition could potentially transform Ripple into a bank! #XRP pic.twitter.com/5a7YTpwSN7
— JackTheRippler ©️ (@RippleXrpie) May 1, 2025
People familiar with the negotiations allege that discussions are in advanced stages, though neither Ripple nor Circle has officially confirmed the revised bid. Sources suggest that a final agreement may be close, pending further internal evaluations and possible regulatory reviews.
Potential Industry Impact of Ripple’s $20 Billion Bid
Ripple’s attempt to acquire Circle comes amid growing competition in the stablecoin sector. The market for dollar-backed digital currencies has seen renewed interest from both regulators and institutional players in 2025. Owning USDC could place Ripple in direct competition with Tether, giving it significant market leverage.
A successful completion of this deal with its $20 billion valuation would establish a new record for acquisitions within the crypto industry. Such a merger could attract intense monitoring by worldwide regulators due to its substantial dimensions and implications.
The deal will face close regulatory review to understand its impact on stablecoin supremacy and financial stability within digital assets.
Until a formal announcement is made, attention remains on both companies as they work through the remaining terms. If finalized, the acquisition would not only reshape Ripple’s business strategy but could also redefine the balance of power in the stablecoin market.
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