Ripple’s $4–$5 Billion Bid to Acquire Circle Rejected Amid IPO Plans

Main Points:

• Ripple proposed a takeover of Circle for $4 billion to $5 billion, but Circle deemed the offer too low and rejected it. 
• The bid came shortly after Circle filed its S-1 registration for an IPO on the New York Stock Exchange under the ticker “CRCL.” 
• Circle reported revenue growth to $1.68 billion in the past year but saw net income decline to $157 million. 
• Ripple’s own legal issues with the U.S. SEC have largely been resolved, potentially freeing capital for strategic acquisitions. 
• The rejection underscores Circle’s confidence in achieving a higher valuation through public markets and highlights consolidation pressure in the stablecoin sector.
  

In late April 2025, blockchain payments leader Ripple Labs quietly approached its prominent competitor, Circle Internet Financial, with a buyout proposal in the range of $4 billion to $5 billion. The offer—made within a mere 30 days of Circle’s IPO filing—was swiftly rebuffed as “too low,” according to sources cited by Bloomberg. This episode sheds light on the evolving dynamics of the stablecoin marketplace, the strategic ambitions of Ripple beyond XRP token circulation, and Circle’s steadfast confidence in its upcoming public listing. In this article, we delve into the context, details, market implications, and future prospects following the failed acquisition attempt.

Background: Ripple and Circle in the Stablecoin Arena

Ripple, best known for its XRP token and enterprise cross-border payment solutions, has increasingly ventured into the stablecoin domain—most notably via its own RLUSD initiative. Circle, co-founded by Jeremy Allaire, operates USDC, the world’s second-largest stablecoin by market capitalization. USDC underpins a vast array of DeFi platforms, custodial wallets, and payment rails, making Circle a pivotal player in cryptocurrency’s wider financial infrastructure.

Circle’s trajectory toward an IPO has been marked by notable milestones: after a shelved SPAC merger in 2022, the company filed its S-1 registration on April 2, 2025, seeking to list on the New York Stock Exchange under the ticker “CRCL.” The prospectus revealed revenues of $1.68 billion—up from $1.45 billion the previous year—though net income dipped to $157 million from $271.5 million, largely due to operational and distribution expenses.

The Acquisition Offer: Numbers and Timing

According to Bloomberg, Ripple initiated discussions to acquire Circle for $4 billion to $5 billion. This valuation represented roughly a 2.4× multiple of Circle’s trailing revenue, a modest premium compared to typical fintech M&A transactions, which often command 4–6× revenue multiples. The timing—just one month after Circle’s IPO filing—suggests Ripple hoped to pre-empt public market valuation, potentially unlocking synergies between XRP liquidity and USDC’s bank-backed reserves.

However, Circle’s board and major investors reportedly viewed the bid as insufficient, especially in light of bullish sentiment around crypto listings under the incoming Trump administration, which has signaled a more favorable regulatory environment for digital asset firms. The swift rejection underscores Circle’s confidence in securing a higher valuation through its public debut.

Circle’s IPO Filing: A Closer Look

Circle’s S-1 filing discloses a robust revenue base driven by reserve yields, payment processing fees, and institutional partnerships (including 50% revenue-sharing with Coinbase for USDC distribution). The filing highlighted:

1. Revenue Growth: $1.68 billion in the last fiscal year. 
2. Net Income Pressure: Net income of $157 million, down from $271.5 million, reflecting increased distribution and operational costs. 
3. Bank Network Expansion: Circle emphasized its expanding network of banking relationships—wires, ACH, SEPA, and more—to bolster liquidity services.
4. Regulatory Readiness: Preparations for SEC oversight as a public company, including enhanced governance and transparent financial reporting. 

These factors likely influenced Circle’s decision to reject the offer, as going public at an anticipated valuation north of $6 billion would better reward early investors and employees.

Ripple’s Legal Position and Capital Availability

Ripple’s strategic push into M&A follows resolution of its long-running SEC lawsuit. In August 2024, a U.S. district court found Ripple liable for $125 million in damages for unregistered securities sales. Yet by March 2025, the SEC decided not to appeal, paving the way for Ripple to settle with a $50 million payment under the lower court’s terms. Freed from litigation overhang, Ripple may now channel capital toward acquisitions, product development, and expanding its On-Demand Liquidity (ODL) corridor network.

Market Reaction and Share Implications

• Ripple (XRP): Following the Bloomberg report, XRP’s trading volume spiked 30%, with prices climbing 8% in anticipation of Ripple’s broader strategic ambitions.
• Circle (USDC): USDC maintained stability, trading firmly at $1.00, as the refusal signals Circle’s intent to remain an independent, publicly traded entity.
• Investor Sentiment: Analysts at Bankless and FXCintel project that Circle’s IPO could fetch a market capitalization of $8–10 billion, reflecting investor appetite for stable, yield-generating crypto assets.
  

Strategic Implications for the Stablecoin Ecosystem

1. Consolidation Pressure: The bid highlights consolidation trends as firms seek scale to compete with Tether (USDT), the dominant stablecoin with $80 billion market cap. A combined Ripple-Circle entity could have challenged Tether’s hegemony.
2. Regulatory Significance: Public listing subjects Circle to heightened SEC scrutiny, potentially setting precedents for stablecoin reserve transparency and consumer protection.
3. Competitive Dynamics: Ripple’s push underscores the importance of diversifying beyond token issuance into regulated financial services, including cross-border payments and on-chain settlement.

Future Outlook and Potential Next Moves

Although Circle rebuffed the initial offer, industry watchers expect Ripple to continue exploring strategic partnerships or acquisition opportunities. Possible next steps include:

• Revised Offer: A higher bid aligned with S-1 valuation estimates (e.g., $6 billion).
• Partnership Agreements: Deeper integration on liquidity corridors, enabling ODL rails to leverage USDC.
• Collaborations with Banks: Joint ventures to expand fiat on- and off-ramps, enhancing institutional adoption.

Meanwhile, Circle’s focus will be on executing a successful IPO, deploying capital for further product innovation (e.g., yield-bearing USDC vaults), and solidifying its bank network. The broader stablecoin market will closely watch these developments, as they will shape competitive positioning and regulatory frameworks in 2025 and beyond.

The failed acquisition attempt by Ripple to buy Circle for $4 billion to $5 billion underscores both firms’ strategic priorities: Ripple’s ambition to scale its stablecoin and payment infrastructure, and Circle’s confidence in its impending public market valuation. As Ripple emerges from SEC litigation and Circle charts its IPO path, the stablecoin arena is poised for accelerated evolution—marked by potential M&A, regulatory milestones, and heightened competition for market share. Stakeholders across DeFi, institutional finance, and retail environments should brace for a dynamic period where value accrual hinges on liquidity innovation, compliance rigor, and strategic alliances.