Information regarding Ripple's attempt to acquire Circle, the issuer of USD Coin (USDC), confirms that the bid was rejected. The reasons for the declined offer and the future steps of both companies are discussed.
Ripple's Offer and Circle's Position
Circle rejected Ripple's purchase offer, as insiders indicated it was deemed too low. The valuation of the company is considered to be between $4 billion and $5 billion. Currently, Ripple has not confirmed a new bid for acquisition.
Comparison of USDC and RLUSD
Circle is pursuing its IPO, officially filed earlier this month, while USDC remains dominant in the stablecoin market with a market cap of about $61.5 billion. Meanwhile, Ripple launched RLUSD in December 2024, with a market cap of $317 million, aiming to address institutional liquidity needs.
Ripple's Outlook and Circle's Future Plans
Ripple is expanding its infrastructure solutions, having recently acquired Hidden Road for $1.25 billion, enhancing access to liquidity markets. Circle is actively working on expanding its payment network and strengthening its position before the IPO. Ultimately, both companies' plans will depend on responses to current challenges, including competitive market dynamics and regulatory requirements.
Ripple's bid for Circle highlights the tension in the stablecoin market and the ongoing competitive landscape between the two companies, each with ambitious future plans.
