Ripple Versus Circle: How Much is The USDC Issuer Really Worth?

Ripple Labs recently made headlines with a bold offer to acquire Circle, the company behind the USDC stablecoin. The move has raised questions about Circle’s actual market value and the future for both companies. With Circle aiming for a public listing and Ripple expanding its reach, the stablecoin race is heating up. Ripple Labs Made a $5 Billion Bid for Stablecoin Issuer Circle Ripple Labs, the blockchain payments firm associated with the XRP coin, made a $5 billion offer to buy Circle. The company is responsible for the USDC, one of the world’s most widely used stablecoins. According to a report, the offer was turned down. Circle has been preparing to go public and filed its S-1 with the U.S. Securities and Exchange Commission on April 1, 2025. The company plans to list on the New York Stock Exchange under the ticker symbol CRCL. Backed by major financial institutions like JPMorgan Chase and Citigroup, Circle is aiming for a valuation between $4 billion and $5 billion when it launches its IPO later this summer. This is a significant shift from 2022, when a failed SPAC deal pegged the company at $9 billion. Despite the downward revision from its 2022 valuation, Circle refused Ripple’s offer. Meanwhile, sources close to the company say Circle expects its value to climb post-IPO. This is particularly important with the strong support of firms like BlackRock and Fidelity. USDC, its flagship stablecoin, holds over $60 billion in circulating supply. In contrast, Ripple’s newly launched RLUSD stablecoin has only just crossed the $300 million mark. Some analysts say acquiring Circle would have instantly placed Ripple at the top of the stablecoin game. However, Circle’s position in the regulatory space and its wider market adoption were likely key reasons for rejecting Ripple’s bid. Revised Offer Rumored, as John Deaton Suggests Higher Valuation There are now speculations that Ripple may have raised its original $5 billion offer, though details remain unconfirmed. X user Andrew (AP_Abacus), who cited anonymous sources, hinted at this new development. Well-known crypto lawyer John Deaton commented on the situation, saying Circle likely believes its value will exceed the offer following a successful IPO. He noted that the current administration favors crypto and that new laws, including the STABLE and GENIUS Act, could give Circle more room to grow. Deaton believes the right mix of policy and public listing could push Circle’s worth closer to the $9 billion valuation it once held. However, not everyone agrees. Some users online warned that lower interest rates might hurt Circle’s profits, making a deal with Ripple more attractive in the long term. Ripple Moves On With Other Acquisitions It is worth noting that Ripple Labs has not slowed down in its recent development plans. Their primary focus is on building their portfolio. It recently agreed to acquire Hidden Road, a prime brokerage firm, in a $1.25 billion deal. Although it has settled a long-standing legal issue with the SEC, Ripple is not planning an IPO soon. Instead, the company chooses to grow through key purchases and product launches. With the Circle bid rejected, Ripple may turn to smaller players or explore partnerships to strengthen its RLUSD project. New regulations, such as the Securities Clarity Act of 2025, could give the company more confidence to expand within the U.S. The stablecoin space remains competitive, and Ripple and Circle are looking to shape the next chapter. Source: https://www.thecoinrepublic.com/2025/05/03/ripple-versus-circle-how-much-is-the-usdc-issuer-really-worth/