Ripple, the blockchain company associated with XRP, has proposed an acquisition offer to Circle, the issuer of the USDC stablecoin. Initial reports indicated that Ripple’s offer ranged between $4 billion and $5 billion, which was promptly rejected by Circle, citing the valuation as too low.
However, Ripple has demonstrated its commitment to the acquisition by reportedly raising its bid to an impressive $20 billion, with discussions progressing toward completion.
A $20 Billion Deal In The Making?
Circle, known for issuing the world’s second-largest stablecoin after Tether’s USDT, has established itself as a pivotal player in the digital finance ecosystem. The company recently filed for an initial public offering (IPO), underscoring its desire to maintain independence and confidence in its market position.
In 2022, Circle was valued at $9 billion during an attempted public listing through a special-purpose acquisition company (SPAC), suggesting that Ripple’s initial valuation may not have aligned with Circle’s expectations.
The competitive landscape of the stablecoin market has grown increasingly fierce in 2025. Ripple has recently launched its own US dollar-pegged stablecoin, RLUSD, signaling its ambition to expand beyond cross-border payments and venture into broader realms of digital finance.
A successful acquisition of Circle would significantly enhance Ripple’s influence within the stablecoin market, providing greater control over decentralized finance and blockchain payment systems. Circle’s appeal to Ripple also reflects the company’s escalating value and importance within the sector.
XRP Faces Market Pressure
The market’s reaction to Ripple’s takeover attempt was immediate and noticeable. After the initial rejection of the offer, XRP saw its market valuation drop below $130 billion on May 1, 2025, and is currently seeing a steeper drop towards $125 billion. Still, it secured fourth place in terms of market capitalization.
While major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) largely maintained their values, inching close to the key $100,000 and $2,000 levels respectively, the fluctuations in XRP underscored the heightened stakes and investor interest surrounding this potential merger.
The XRP price has also seen a 4.3% correction in the weekly time frame, but still managed to hold above its next and critical support level of $2, now trading at $2.15, with year-to-date gains of over 300%.
If the deal is finalized at the new $20 billion valuation, it would represent one of the largest mergers in the history of the cryptocurrency industry. This development raises critical questions about regulatory responses, particularly as stablecoins come under increased scrutiny globally.
As of now, neither Circle nor Ripple has issued an official statement confirming the details of the agreement. However, sources indicate that negotiations are in advanced stages, with both parties nearing a conclusion.
Featured image from DALL-E, chart from TradingView.com
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