Circle Rejects Ripple’s $4B-$5B Bold Buyout bid as IPO Plans Take Priority

Circle’s refusal of the acquisition offer reportedly stems from its own plans to go public. The company confidentially filed for an initial public offering (IPO) earlier in 2025 and is preparing to list on the New York Stock Exchange under the ticker “CRCL.” This move signals strong confidence in its standalone growth strategy, valuation, and leadership in the stablecoin industry.

USDC currently holds the position as the second-largest stablecoin by market capitalization, behind Tether’s USDT. It boasts a circulating supply of over $32 billion and is heavily integrated across global exchanges, DeFi protocols, and payment networks. By comparison, Ripple’s own stablecoin, RLUSD, launched earlier this year remains in its infancy, with under $350 million in circulation. The potential acquisition of Circle would have given Ripple immediate access to a mature stablecoin ecosystem, established regulatory pathways, and a trusted name in dollar-backed digital assets.

This rejection comes at a pivotal time for Ripple. The company, which is best known for its XRP token and global payments network, has been actively repositioning itself as a broader financial infrastructure player. In early April, Ripple acquired Hidden Road, a multi-asset prime brokerage platform, for $1.25 billion. The acquisition marked a milestone for the crypto industry, making Ripple the first major blockchain company to own a global prime broker catering to institutional clients.

Analysts believe that acquiring Circle would have allowed Ripple to vertically integrate its growing suite of financial services, combining payments, tokenized liquidity, and stablecoins, under a single roof.

Circle’s decision to reject the offer may also reflect broader market conditions and the growing value of regulatory clarity. Unlike many crypto firms navigating murky compliance waters, Circle has pursued an aggressive strategy of transparency and licensing. It holds a New York BitLicense, has applied for multiple licenses abroad, and recently received in-principle approval to operate in Abu Dhabi’s Global Market (ADGM). With growing demand for compliant stablecoins globally, especially from financial institutions and governments, Circle may view independence as more advantageous than consolidation.

Meanwhile, Ripple continues to wrestle with regulatory overhang in the United States. Although the company scored a partial legal victory in 2023 when a federal judge ruled that XRP sales on secondary markets were not securities, the firm still agreed to pay a $50 million settlement to the U.S. Securities and Exchange Commission earlier this year. CEO Brad Garlinghouse has since stated that Ripple is ready to move past regulatory battles and focus on global expansion and product development.

Industry insiders note that the failed acquisition could set the stage for increased rivalry between Ripple and Circle, particularly as stablecoins become central to global crypto adoption and cross-border payments. With U.S. regulators preparing legislation to clarify the legal status of stablecoins, and MiCA rules already taking effect across the EU, control over trusted stablecoins may define the next phase of digital asset competition.

For now, Circle appears to be betting on the public markets to drive its next stage of growth. Should its IPO proceed successfully, it will become one of the few crypto-native companies trading on U.S. equity markets, potentially joining the likes of Coinbase and Robinhood in bridging the gap between traditional finance and digital assets.

Ripple, on the other hand, is likely to continue hunting for strategic acquisitions as it builds a comprehensive suite of blockchain-enabled financial products. Though the Circle deal may have fallen through, Ripple’s willingness to pursue such a high-stakes acquisition signals that the battle for stablecoin dominance is just beginning.