Ripple is considering the acquisition of USDC stablecoin issuer Circle. Various experts share their views on the potential deal, linking it to the growing competition between organizations.
Competition Between Ripple and Circle
XRP-focused YouTuber Moon Lambo observed a clear pattern of mutual competition between Ripple and Circle in recent months. He noted that Ripple introduced RLUSD, a U.S. dollar-backed stablecoin aimed at the same market segment as USDC. Following this, Circle launched a cross-border payments platform, seen as direct competition to Ripple and XRP's use as a bridge asset.
Strategic Questions Raised by Bill Morgan
Bill Morgan took a more analytical approach, identifying two key questions raised by the report. He suggested that RLUSD may not be scaling at the pace Ripple needs for its goals in payments and tokenization. If true, this could indicate that Ripple anticipates rapid growth in demand for tokenized assets and stablecoin settlements. Morgan also proposed the possibility that RLUSD’s launch was never intended as a fully standalone product, but rather as part of a broader strategy that could include the acquisition of an already dominant player like Circle.
Stablecoin Market Dynamics and Ripple's Position
These interpretations reflect broader concerns about adoption timelines, product viability, and the intense competition shaping the stablecoin and cross-border payments sectors. Ripple's RLUSD was introduced last year in an effort to offer a regulatory-compliant, enterprise-grade stablecoin. However, it enters a market already dominated by Circle’s USDC and Tether’s USDT, both of which have long-established liquidity and integrations across crypto exchanges and DeFi platforms. The scale of that competition may have prompted Ripple to explore an acquisition to boost its reach.
The analysis by Moon Lambo and Bill Morgan underscores a growing sense that Ripple's strategy may involve both internal development and external consolidation to strengthen its foothold in the evolving financial ecosystem.
