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Ripple Labs reportedly made an offer to acquire its stablecoin competitor, Circle Internet Group, for a price between $4 billion and $5 billion, according to sources familiar with the matter speaking to Bloomberg on Thursday. However, this bid was turned down by Circle, which deemed the offer too low.
While Ripple is said to still be interested in a potential acquisition, the sources, who requested anonymity due to the private nature of the discussions, indicated that the blockchain company has not yet decided whether to submit a revised offer. For its part, Circle is reportedly focused on proceeding with its initial public offering (IPO), for which it filed earlier this month.
Representatives for both Circle and Ripple declined to comment on the market rumors. A Circle spokesperson stated, "We do not comment on market rumours. As we are currently in a quiet period with the SEC, we cannot comment further on our corporate financial plans. Our long-term goals remain the same." A Ripple representative also declined to provide a statement.
This takeover attempt comes amid a surge in crypto dealmaking, fueled by the recent rally in digital asset values that has also spurred IPO plans for several crypto firms. Besides Circle, companies like BitGo, Gemini, and Bullish Global have also reportedly been considering going public this year, Bloomberg noted.
Ripple has been actively expanding its reach, having recently agreed to acquire prime brokerage Hidden Road for $1.25 billion in April. Circle is a major player in the stablecoin market, issuing USDC, one of the world's largest stablecoins pegged to the US dollar.
Notably, Ripple launched its own stablecoin, RLUSD, in December, which currently has a market capitalization of around $316.9 million. This is significantly smaller compared to Circle's USDC, which boasts a market value of around $61.7 billion.
