Ripple’s ambitious $5 billion takeover bid for Circle, the USDC stablecoin creator, fell flat on its face. Circle executives scoffed at the offer, calling it “insultingly low” – and no wonder. Circle processes a whopping $197 billion in monthly transactions and boasts backing from heavyweights like BlackRock and Fidelity. With Circle eyeing a $9 billion IPO valuation and USDC’s $60 billion market cap, Ripple’s lowball offer seems almost laughably misguided. The full story reveals just how badly Ripple misread the room.
Ripple’s ambitious $5 billion bid to acquire Circle, the company behind USDC stablecoin, crashed and burned in late April 2025. Circle executives took one look at the offer and basically laughed it off the table, calling it “insultingly low” for a company that manages a whopping $60 billion in USDC market cap.
Circle’s rejection of Ripple’s $5B takeover bid shows even crypto giants can’t lowball their way into stablecoin dominance.
The rejection wasn’t exactly shocking. Ripple, fresh off its $1.2 billion Hidden Road acquisition, tried to snag Circle with a measly $4-5 billion offer – pocket change compared to USDC’s market dominance. Circle, busy prepping for its own IPO, wasn’t about to sell itself short. Not when it’s processing $197 billion in monthly transactions and sitting pretty as the second-largest stablecoin issuer globally. The deal would have significantly strengthened Ripple’s payment solutions through Circle’s stablecoin expertise. Circle’s decision was reinforced by its strong investor backing from BlackRock and Fidelity.
Let’s be real: Ripple’s RLUSD stablecoin is a tiny fish in a massive pond, with just $300 million in market cap. Trying to buy USDC’s creator was like bringing a water pistol to a naval battle. Circle wasn’t impressed with the equity terms either, which were about as liquid as concrete. The evolving landscape of crypto banking services could reshape how stablecoins operate within traditional financial institutions.
The timing was interesting, coming right after Ripple’s $50 million SEC settlement cleared the regulatory clouds. But Circle had its own plans, eyeing a potential $9 billion valuation through its upcoming IPO. Why settle for Ripple’s lowball offer when you can ride the crypto firm public listing wave?
The failed bid reveals Ripple’s desperate hunger to expand its stablecoin footprint. Controlling over 7% of global stablecoin supply through USDC would’ve been nice, but Circle wasn’t having it. They’re too busy maintaining their 1:1 USD reserves and competing with Tether’s $110 billion USDT behemoth.
The door isn’t completely shut – Ripple might come back with a fatter wallet post-Circle’s IPO. But for now, Circle’s message is clear: come back when you’ve got serious money to talk about. In the wild west of crypto, even $5 billion sometimes isn’t enough to get a seat at the big kids’ table.
