Key Highlights
- Ripple’s potential acquisition of Circle raises market speculation.
- XRP advocate John Deaton envisions Ripple and Circle as future banking entities.
- Ripple Labs makes strategic acquisitions amid a shifting regulatory environment.
The Ripple Proposal to Acquire Circle
John E. Deaton, a prominent lawyer representing XRP holders, has shared insights on Ripple Labs’ interest in acquiring Circle, the issuer of the USDC stablecoin. This potential deal has generated considerable speculation regarding the implications for the wider cryptocurrency ecosystem. Deaton expressed optimism about Ripple’s future prospects, suggesting that the acquisition could lead to Ripple evolving into a banking entity.
Ripple’s Increased Offer
In a recent post on social media platform X, Deaton raised the question of how Ripple plans to finance its acquisition of Circle. His comments were prompted by an article from TechCrunch founder Michael Arrington, who reported that Ripple increased its offer for Circle from $3 billion to $5 billion. However, Circle reportedly deemed the proposal insufficient and chose to reject it.
If Ripple & Circle combines, buy / become a bank is the next one. Interesting minds want to know: to what height @bgarlinghouse go? https://t.co/hanfpiputq
– John E. Deaton (@johnedeaton1) April 30, 2025
Circle’s Response and Market Dynamics
Circle’s rejection followed closely after the company filed for an initial public offering (IPO) in the United States. Reports indicate that Circle believes Ripple’s offer undervalues the company. The ongoing discussions around the potential acquisition come as Circle focuses on leveraging its IPO to enhance its offerings and capitalize on the growing interest in digital assets.
Regulatory Considerations for Ripple
Given the current regulatory challenges faced by Ripple, it remains uncertain whether the company will pursue the Circle acquisition further. Following the conclusion of the Ripple vs SEC case, Ripple’s CEO, Brad Garlinghouse, hinted at plans for a potential IPO later this year. With Ripple’s valuation previously estimated at $11 billion, some analysts speculate that achieving the acquisition of Circle may be challenging.
Ripple’s Recent Acquisitions
Last month, Ripple made headlines with its acquisition of Hidden Road, a major brokerage firm, for $1.25 billion. This transaction is noted as one of the largest in cryptocurrency history and aims to bolster Ripple’s capabilities in the XRP ecosystem. Deaton emphasized Hidden Road’s significant position as a brokerage that manages over $3 billion in transactions annually.
Ripple’s Entry into the Stablecoin Market
In alignment with its strategic initiatives, Ripple launched Rlusd, its stablecoin linked to the US dollar, operating on both the XRP Ledger and Ethereum blockchains. Since its launch, Rlusd has seen a market capitalization exceed $300 million, aimed to facilitate peer-to-peer (P2P) and cross-border payments. This development signifies Ripple’s commitment to innovating within the financial services landscape, further enhancing its stature in the blockchain industry.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial or investment advice. Please assess your own circumstances and consult with a financial advisor when making investment decisions.
Benjamin Godfrey is a blockchain enthusiast and journalist, dedicated to exploring applications of blockchain technology and advocating for the broader acceptance of digital assets. His passion for educating others about cryptocurrencies fuels his contributions to leading media and blockchain platforms.