According to a report by Bloomberg, blockchain payment company Ripple made a takeover proposal to acquire stablecoin issuer Circle for $4 to $5 billion, but the offer was rejected as too low. Circle is the issuer of USDC, a major USD-pegged stablecoin whose circulation has surged from $33 billion a year ago to $61.5 billion today.
Circle has been aggressively expanding its reach through high-yield promotions in partnership with Binance and Coinbase. These efforts are widely seen as a strategy to boost USDC’s supply and secure a successful IPO.
Ripple’s Offer Rejected as Circle Prioritizes IPO
Sources familiar with the matter, who asked to remain anonymous due to the confidential nature of the talks, stated that Ripple’s offer was declined as undervalued. While Ripple reportedly remains interested in a potential acquisition, no new offer has been made at this time. Circle is said to be focused on completing its IPO, filed earlier this month.
A spokesperson for Circle responded via email:
“We do not comment on market rumors. As we are currently in a quiet period with the SEC, we are unable to provide further comment on financial plans. Our long-term goals remain unchanged.”
According to PitchBook, Circle was valued at $7.7 billion in 2022, and this valuation has reportedly risen to $9 billion.
Strategic USDC Growth with Binance and Coinbase
USDC’s circulation has almost doubled in the past year, driven not only by a recovering crypto market but also by aggressive marketing partnerships.
At the end of last year, Circle signed a two-year promotional agreement with Binance. As part of the deal, Circle paid Binance a one-time fee of $60.25 million, and agreed to pay monthly incentives based on the amount of USDC held in Binance's platform and treasury. Binance now offers up to 10% APY on flexible USDC deposits, though it’s capped at 400 USDC.
Meanwhile, Circle’s long-standing partner Coinbase launched the USDC Boosted Rewards program in February, offering up to 12% APY on USDC held in perpetual futures portfolios, with a cap of $1 million per user.
High Spending, Modest Profit – But IPO in Sight
According to Circle’s IPO filings, the company reported $1.676 billion in revenue for 2024 (a 16% year-over-year increase), but net income dropped to $155 million due to significant promotional expenses. Analysts suggest these costs are strategic—aimed at maximizing USDC’s growth and visibility ahead of the IPO.
Incentives for success are high: Circle executives are reportedly set to receive $1 million in cash bonuses if the IPO goes through as planned—making an acquisition by Ripple unlikely at this stage.
