In a bold move that highlights its confidence in independent growth, Circle Internet Financial, the issuer of the $61 billion USDC stablecoin, recently rejected a $4 to $5 billion acquisition offer from Ripple Labs, the blockchain payments company behind XRP. This decision underscores Circle’s strategic shift toward pursuing an initial public offering (IPO) and reflects growing optimism about its valuation in a changing regulatory and market environment.Circle turned down Ripple’s bid because it believes public markets will value the company higher than Ripple’s offer, especially as stablecoins become more important in global finance. With USDC ranked as the second-largest stablecoin behind Tether (USDT), Circle has established itself as a key infrastructure provider for blockchain-based payments, decentralized finance (DeFi), and cross-border transactions. The company’s recent launch of the Circle Payments Network, a platform designed to streamline international money transfers, further demonstrates its ambitions beyond just issuing stablecoins.
Circle’s leadership views its IPO, filed in April 2025 with JPMorgan Chase and Citigroup as lead underwriters, as a pathway to a valuation that could exceed $10 billion. This optimism is driven by crypto-friendly regulatory developments, such as the proposed STABLE GENIUS Act, which aims to clarify rules for stablecoin issuers in the U.S. Additionally, Circle’s revenue model, which relies heavily on interest income from the reserves backing USDC, has proven resilient, generating $156 million in profit in 2024 despite sharing 60% of revenues with distribution partners like Coinbase.JPMorgan Chase and Citigroup are playing crucial roles as underwriters and advisors for Circle’s IPO. Their responsibilities include structuring the offering, setting the initial share price, and ensuring regulatory compliance. The involvement of these financial giants lends credibility to Circle’s public debut, signaling to institutional investors that the stablecoin issuer is a serious contender in the evolving digital finance sector. Beyond underwriting, both banks are advising Circle on regulatory strategy and market positioning, which are critical given the scrutiny stablecoins face from lawmakers and competition from companies like PayPal’s PYUSD and Ripple’s newly launched RLUSD.
Ripple’s bid for Circle fits with its broader strategy to expand beyond its core cross-border payments business. Despite settling a high-profile SEC lawsuit in 2023 and launching its own stablecoin, RLUSD, Ripple’s stablecoin has struggled to gain traction, with a market cap of just $300 million compared to USDC’s dominance. Acquiring Circle would have instantly made Ripple a major player in the $160 billion stablecoin market, challenging Tether and Ethereum-based alternatives. However, Circle’s rejection means Ripple must now focus on organic growth for RLUSD and its XRP Ledger ecosystem.
The failed acquisition highlights the intensifying competition in the stablecoin sector, where companies compete for dominance in payments, remittances, and DeFi. Circle’s IPO plans also reflect a broader trend of crypto-native firms seeking legitimacy and capital through public markets, following similar moves by Kraken, BitGo, and Gemini. Meanwhile, misinformation-such as false claims that Ripple offered $20 billion for Circle-underscores the volatility of market sentiment in the crypto industry, where rumors can quickly sway prices and investor behavior.
Circle’s IPO gamble depends on its ability to convince public investors that stablecoin-driven revenue models are sustainable and scalable. Success could validate the sector’s maturity, while setbacks might encourage competitors like Ripple. For now, both companies are taking different paths: Circle aims to leverage Wall Street backing and favorable regulation to cement its role in global finance, while Ripple must prove that RLUSD and its payments network can thrive independently. As the stablecoin wars heat up, the strategies of these companies will shape the next phase of blockchain adoption and determine whether crypto’s infrastructure giants can transition from niche disruptors to mainstream financial pillars.
