$5 Billion Bid for USDC: Why Ripple’s Offer Was Rejected

In late April 2025, Ripple reportedly made a $5 billion bid to acquire Circle, the issuer of the second-largest stablecoin by market cap, USDC. Bloomberg was first to report the offer, citing sources familiar with the matter. 

The report was later picked up by The Business Times, while Forbes framed the potential deal as a strategic move by Ripple to expand its footprint in the digital asset market.

So far, neither Ripple nor Circle has confirmed or denied the talks. However, the lack of public comment, amid mounting speculation, suggests the deal remains a live possibility.

Why Ripple May Be Targeting Circle

Ripple’s offer to acquire Circle, the issuer of USDC, may signal more than a play for stablecoin market share (the company already has its own stablecoin, RLUSD). 

The move appears to be part of Ripple’s broader strategy to accelerate its transformation into a global provider of digital payment infrastructure. With the recent launch of RLUSD, Ripple is signaling a readiness to push further into traditional finance.

A takeover of Circle would give Ripple access to:

• Established infrastructure 
• A loyal European user base 
• Existing banking relationships
• valid MiCA licenses 

This is a textbook example of a company with global ambitions looking to acquire not just technology, but brand credibility. Gaining control of USDC, one of the most influential assets in the digital currency market, would further cement Ripple’s position in the sector.

For more on Ripple’s stablecoin strategy, see RLUSD Stablecoin: Latest Updates and Insights.

Why Circle Rejected the Deal

The legal and regulatory backdrop likely played a significant role. Circle has built its reputation on transparency and strict adherence to the U.S. regulatory framework. 

The company:

• Collaborates with the U.S. Treasury
• Actively supports FinCEN initiatives,
• Strives for full compliance with SEC and OCC requirements

Meanwhile, Ripple has been locked in a high-profile legal battle with the SEC over the regulatory status of its native cryptocurrency, XRP. While a 2023 ruling partially favored Ripple, the court stopped short of issuing a definitive legal clearance. For Circle, which is preparing for an IPO, any association with ongoing regulatory uncertainty may have been deemed too risky.

Ultimately, Circle declined the offer, citing its strategy of independent growth. Company executives said the firm does not require external backing. With USDC’s market valuation estimated at over $61.5 billion, Circle continues to present itself as a regulatorily mature player focused on institutional investors.

Additionally, Circle has established long-standing trust with U.S. regulators. The company has made reserve transparency a cornerstone of its public positioning and is working to position USDC as the dominant stablecoin in the U.S. market. A potential acquisition by Ripple, given its ongoing legal entanglements with the SEC, likely represented an outsized risk for Circle.

For more on Circle and its founder, see How Jeremy Allaire Built Circle and Made USDC a Stablecoin Giant.

Implications for the Stablecoin Market

Talk of a potential deal between two industry heavyweights points to several emerging trends:

1. Competition is no longer simply aggressive—it has become strategic. Firms are vying not just for users, but for infrastructure and control over liquidity. Ripple’s bid reflects ambitions with a clear cross-border dimension.
2. Circle’s rejection may signal that the market is approaching a phase of consolidation, but on its own terms. With valuations exceeding $50 billion, firms like Circle are no longer easily acquired, even with $5 billion offers. That points to a revaluation of assets and growing investor confidence in the stablecoin model.
3. Ripple is unlikely to be the last firm to pursue licensed projects in Europe. With the rise of central bank digital currencies and tightening regulatory frameworks in the U.S. and EU, the sector appears headed for further structural realignment. For now, Ripple and Circle remain on opposite sides of that shift.

History suggests that the boundaries between fintech, crypto, and traditional banking continue to blur.

• Ripple positions itself not just as a crypto firm, but as a functional alternative to SWIFT. 
• Circle aims to go public, just as Coinbase did. 

Their objectives may diverge, but a mutual focus on regulated stablecoins places both firms on the same playing field.

For a deeper look at the market’s trajectory, see Stablecoin Market Cap Surpasses $230B Following Trump’s Endorsement.