Circle Rejects Ripple Labs’ $5 Billion Buy-out Offer

USDC parent company Circle Internet Financial may be for sale, but not for the $5 billion Ripple Labs reportedly offered the firm in another classic crypto M&A move.

In an interesting turn of events, stablecoin issuer Circle rejected Ripple’s $5 billion buy-out offer. According to those familiar with the matter, the San Francisco-based Ripple is very interested in Circle, hence the attempt to buy the firm.

Comparing Ripple and Circle Valuation 

According to a Bloomberg report, Ripple offered $4 billion to $5 billion as part of its attempted takeover of Circle. Unfortunately, the USDC issuer rejected the bid because of its size (very low). For now, the Brad Garlinghouse-led firm is still considering whether to make another offer to the stablecoin issuer. 

Compared to Ripple, which has a market capitalization of about 300 million, Circle boasts of up to $60 billion.

However, the blockchain payment firm’s valuation was capped at $11 billion in 2024, after which Garlinghouse said it was outdated. Its confidence in acquiring the stablecoin issuer likely comes from the renewed hope it has received following the US SEC dismissal of its five-year-long lawsuit. 

Circle is one of the fastest-growing companies preparing for an Initial Public Offering (IPO). In July 2024, it was selling its stock at a $5 billion valuation while preparing for its upcoming IPO. It is worth noting that this value is lower than the $9 billion reached in 2022 during its unsuccessful SPAC deal attempt.

Ripple and Circle Expand Individual Ecosystem 

Ripple and Circle are committed to other causes in the broader digital asset sector, all aimed towards their individual growth and expansion.

Over two weeks ago, Ripple bought Hidden Road, a fast-growing prime brokerage firm, for a staggering $1.25 billion in a new development. The acquisition made Ripple the first crypto company to own and run a fully multi-asset prime broker. 

Ripple plans to transfer Hidden Road’s post-trade operations onto the XRP Ledger (XRPL). 

On the other hand, Circle introduced a new global payments and cross-border remittance network a week ago. The tool’s official launch took place on April 22, 2025, at the firm’s New York One World Trade Center headquarters. This move prioritizes Circle’s integration within the banking, fintech, and payment sectors. 

In the long run, Circle’s vision is to leverage USDC’s utility and potentially challenge existing payment giants such as Visa and Mastercard.

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