Ripple's aggressive strategy: Proposing a $20 billion acquisition offer for Circle.
Ripple Inching Closer to Acquiring Circle for a Whopping $20 Billion
In an aggressive move to conquer the global stablecoin market, Ripple has upped its proposed acquisition offer for Circle - the issuer of the second-largest stablecoin USDC - to a staggering $20 billion.
Initially, Circle preferred focusing on its IPO process, rejecting Ripple's initial offer. However, recent discussions suggest that the $20 billion bid is now under serious consideration. Quipped Ripple's CTO, David Schwartz, "Six billion dollars, but our final offer is this."
Circle's IPO Strategy vs Merger Debate
If the merger takes place, Ripple will gain control over USDC. Though Circle is yet to make a firm decision, Bloomberg sources hint at active discussions regarding the offer. With this acquisition, Ripple aims to promote its newly launched stablecoin, RLUSD, a key player in corporate payments and bi-directional usage in DeFi.
RLUSD and Middle East Market Expansion
RLUSD has been integrated into the Ripple Payments system and has already reached a market value of $300 million. Ripple is particularly pushing RLUSD in the Middle East market, host to 40% of institutions operating on the Ripple infrastructure.
Ripple's Recent Acquisitions and Legal Challenges
In a recent move, Ripple acquired the non-bank prime broker Hidden Road for $1.25 billion, making it the first global prime broker in the crypto sector. But the company faces hurdles due to its ongoing lawsuit with the SEC, which might decide its IPO fate and the possibility of the Circle acquisition. clarity on the legal front is essential for these plans to progress.
Ripple's Ambitious Future
Should the Circle acquisition succeed, Ripple will control two major stablecoins - USDC and RLUSD. This domination will establish Ripple as a central player in corporate payments, stablecoin infrastructure, and global exchange systems.
For now, Ripple waits and prepares, seeking to maintain its pace in the evolving digital finance landscape. The result of the Circle acquisition and Ripple's SEC lawsuit could shape the company's future in the global stablecoin market.
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Initially, the offer was reported to be in the range of $4 billion to $5 billion. However, the increasing complexity of the deal, coupled with Circle's ambitions for an IPO, prompted Ripple to raise its offer [3][4]. The negative momentum slowed down towards the end of 2021 when Ripple faced a regulatory crackdown from the SEC, leaving the deal's future uncertain [4]. Ripple's acquisition of Hidden Road in June 2021 and the launch of RLUSD in May 2021 were strategic moves aimed at strengthening Ripple's grip on the cross-border payment market [2][4]. Circle, on the other hand, has been expanding globally, aiming to strengthen its position in the stablecoin market without relying on any partnerships [1]. The ongoing lawsuit between Ripple and the SEC keeps the company in a vulnerable position, which could delay or potentially jeopardize the Circle acquisition and other growth plans [4].
- Ripple's Chief Technology Officer, David Schwartz, humorously commented on the increased acquisition offer by saying, "Six billion dollars, but our final offer is this."
- Circle, the issuer of the second-largest stablecoin USDC, initially preferred focusing on its IPO process, rejecting Ripple's initial offer.
- In the wake of the ongoing lawsuit with the SEC, Ripple has faced hurdles, which might decide its IPO fate and the possibility of the Circle acquisition.
- Ripple aims to promote its newly launched stablecoin, RLUSD, a key player in corporate payments and bi-directional usage in DeFi, should the merger with Circle take place.
