Circle Turns Down $20B Acquisition Offer from Ripple Amid IPO Push
In a bold move that underscores its ambitions for public market dominance, Circle Internet Financial, the issuer of the second-largest stablecoin USDC, has rejected a multi-billion-dollar acquisition offer from Ripple Labs, according to sources close to the matter.
The offer, rumored to be in the range of $20 billion, would have created one of the most formidable players in the digital asset industry. However, insiders say Circle remains committed to its initial public offering (IPO) plans and sees greater strategic value in remaining independent.
🏦 IPO Over Acquisition: Circle Bets on Independence
Founded in 2013, Circle has long positioned itself as a regulatory-first, infrastructure-driven company powering the next generation of internet finance. With USDC circulation topping $48 billion, it plays a central role in crypto payments and decentralized finance (DeFi).
“Circle believes the future of digital finance demands transparency, regulatory alignment, and deep public accountability,” said a source familiar with the matter. “Going public, not merging, aligns best with those values.”
The IPO process, however, has reportedly slowed due to market volatility and uncertain macroeconomic conditions. Nonetheless, Circle has reaffirmed its intention to list once conditions stabilize.
🔁 Ripple’s Ambitions and Strategic Calculations
Ripple, best known for its XRP token and enterprise blockchain solutions, has been expanding aggressively beyond cross-border payments. With the long-standing SEC lawsuit behind it and a strengthened balance sheet, Ripple has been on the hunt for acquisitions to diversify its business model and reinforce its relevance in a rapidly evolving ecosystem.
The proposed buyout of Circle would have positioned Ripple as a key player in the stablecoin market, one of the most critical infrastructure layers in the crypto economy.
“Ripple sees the stablecoin market as a critical growth frontier,” said analyst Jordan Tang from ChainMetrics. “An acquisition like Circle would have immediately vaulted them into a leadership position, second only to Tether.”
⚖️ Regulatory Headwinds and Strategic Caution
Circle’s decision may also have been influenced by regulatory dynamics. Both companies operate in the heavily scrutinized stablecoin and payments landscape. A merger of this scale could have drawn regulatory red flags, particularly in the U.S. and Europe.
Moreover, industry watchers believe Circle’s leadership is wary of losing autonomy, especially given its transparent and compliance-centric brand, a contrast to Ripple’s more aggressive legal and business tactics.
🔍 Industry Reactions
The crypto community has responded with mixed views. Some praised Circle for maintaining its independence and long-term vision, while others noted the missed opportunity for industry consolidation.
“This would’ve been a mega-merger,” tweeted fintech commentator Laura Shin. “But perhaps it’s a sign that mature crypto companies now prefer the IPO path over strategic exits.”
🔮 What’s Next?
Circle is now doubling down on preparing for a public offering, rumored to take place in late 2025 or early 2026, depending on market conditions. Meanwhile, Ripple is expected to continue exploring acquisition targets as it seeks to expand its footprint beyond XRP.
As the digital asset industry matures, these types of high-stakes negotiations are becoming increasingly common, signaling that crypto is not just surviving, but evolving into a corporate battlefield.
Bottom Line: Circle’s rejection of Ripple’s acquisition bid marks a pivotal moment in crypto’s transition from early-stage disruption to institutional competition. With IPO aspirations still in play, Circle is signaling that it sees itself not as a target — but as a leader.