Ripple Labs recently made an ambitious move to acquire Circle Internet Financial, the company behind the widely-used USDC stablecoin. According to sources familiar with the negotiations, Ripple offered between $4 billion and $5 billion, but Circle turned down the proposal, reportedly viewing it as undervalued. Crypto M&A Activity Heats Up This attempted acquisition comes during a surge in crypto-related mergers, acquisitions, and IPOs. With digital assets experiencing renewed momentum and investor enthusiasm, several major players are preparing to go public. Firms such as Kraken, BitGo, Gemini, and Bullish are expected to seek IPOs in 2025, encouraged by the current pro-crypto political climate under the Trump administration. Circle itself has shown public market ambitions. Earlier this month, it filed for an initial public offering (IPO) with the U.S. Securities and Exchange Commission, aiming for a listing on the New York Stock Exchange under the ticker symbol ‘CRCL’. However, just days later, reports suggested that Circle was considering delaying the IPO due to economic uncertainty stemming from shifting U.S. trade policies. Similar caution has been seen with companies like Klarna and StubHub, which are also weighing the risks of an IPO delay. Ripple’s Strategic Playbook Ripple’s interest in Circle aligns with its broader acquisition strategy. Notably, Ripple recently agreed to acquire Hidden Road, a prime brokerage firm, for $1.25 billion. This acquisition underscores Ripple’s desire to expand its ecosystem through strategic purchases rather than public fundraising. Monica Long, Ripple’s president, made it clear that Ripple is not currently considering an IPO. In an interview with CNBC, she emphasized the company’s strong financial position: “We have billions in cash reserves. We don’t need to raise capital or increase market exposure by going public.” She added, “Companies usually IPO to raise funds or elevate their brand. We’re not in need of either right now.” The Stablecoin Race: Ripple vs. Circle Ripple has also entered the stablecoin market with RLUSD, signaling its intent to compete with Circle’s dominant USDC. However, it has a long road ahead. As of May 1, RLUSD had a market cap of $317 million, dwarfed by USDC’s $62 billion valuation, according to CoinGecko. Despite the setback with Circle, Ripple may still pursue a revised offer. The company’s long-term strategy seems focused on acquisitions and internal growth rather than going public, especially after resolving its long-standing legal battle with the SEC.
