Report reveals reasons behind Circle's rejection of Ripple's $5 billion acquisition proposal
Ripple's Ambitions in Stablecoins: A Detour or a Dead End?
Ripple's persistent pursuits in the stablecoin market seem to be hitting a snag, as its offer to acquire the second-largest stablecoin issuer was reportedly declined. Yet, the crypto giant hasn't let this setback deter it from making strides in the industry.
Circle's Snub
A recent report suggested that Ripple's takeover bid for the issuer of the second-biggest stablecoin, USDC, was rejected. Citing unnamed sources, Bloomberg alleged that Circle rejected Ripple's offer range of $4-$5 billion, and the latter shows no signs of raising the bid. In contrast, Circle completed a significant acquisition earlier this year, acquiring Hidden Road, a prime brokerage company, for a whopping $1.2 billion [1]. This move is anticipated to be a game-changer for XRP, with the asset and the XRPLedger network poised to facilitate post-trade settlement on some transactions [1].
Despite the ongoing legal battle with the SEC, Ripple appears to be gearing up for some major moves, although one such move was met with rejection.
RLUSD: Surging but Stalled?
Even though Ripple was unable to secure the second-biggest stablecoin issuer, it has already ventured into this rapidly expanding niche. Recall that Ripple launched its own stablecoin, RLUSD, late last year [2]. It started on a strong note, receiving regulatory approval in the US, and saw its market cap soar from $200 million to $300 million within days in early April [2].
While "stalled" might not fully apply given the asset's continued expansion, its growth does appear to have moderated after an initial surge of 87% in the month preceding April [2]. Since then, its market cap has increased by less than $20 million over several weeks. However, the volumes on centralized exchanges have surged by 30% over the past day to over $50 million [2].
Ripple's RLUSD stablecoin currently holds a mid-tier position in the market, with a market cap of approximately $317 million as of May 2, 2025 [5]. The company aims to leverage its cross-border payment infrastructure for future growth [1][4].
References:
- Binance Free $600
- Bybit $500 FREE position
- Ripple's RLUSD stalls after rapid initial growth
- Ripple integrates RLUSD into its cross-border payment system
- RLUSD's current market cap
- In contrast to the reported decline of Ripple's takeover bid for the second-largest stablecoin issuer, Coingecko data shows that Ripple's own stablecoin, RLUSD, currently holds a market cap of approximately $317 million in the business of finance, representing a significant presence in the technology sector.
- While Ripple's offer to acquire the second-largest stablecoin issuer was allegedly rejected, the crypto market has recently noted a surge in the volumes on centralized exchanges for RLUSD, reaching over $50 million within the past day, indicating continued crypto trading activity.
- Despite Ripple's ongoing legal battle with the SEC potentially stalling some moves, the company's foray into the stablecoin market, such as the launch of RLUSD, has not deterred it from making strides, as Ripple aims to leverage its cross-border payment infrastructure for future growth in the business and technology realms.
- Although Circle opted against Ripple's offer range of $4-$5 billion, the acquisition of Hidden Road by Circle, which is anticipated to be a game-changer for XRP, underscores the potential growth opportunities for crypto giants in the finance and technology industries.
- As Ripple's efforts in the stablecoin market seemingly confront obstacles, the company's persistence in the crypto business and technology arena suggests that Ripple's ambitions in the stablecoin market could be merely a detour rather than a dead end, according to current market trends and Coingecko data.
