Ripple Raises Its Offer to $20 Billion in a New Plan to Acquire Circle

Ripple reportedly raised its Circle acquisition offer to $20B after rejecting a $5B bid.

Acquiring Circle would give Ripple control over USDC, the second-largest stablecoin.

Ripple plans to boost RLUSD adoption and enter the top five stablecoins by the end of 2025.

Ripple has submitted an increased bid of $20 billion to purchase Circle, the operator of the USDC stablecoin. The proposal value has grown substantially from the previous $5 billion bid after Circle rejected it for valuation reasons. Public reports show that Ripple increased its offer after deciding to establish a stronger market position within stablecoins. The company Circle sought public share offerings with a value of $9 billion when it filed its documentation with the public. The updated proposal increases the purchase value for Circle to more than twice the previous assessment

According to anonymous sources, the acquisition talks between Ripple and Circle are advancing. Acquiring Circle is strategic to Ripple because of its broader corporate objectives. RLUSD represents the stablecoin launched by the company early this year, and the organisation plans to extend its power across decentralised finance. By acquiring USDC, Ripple would gain control of one of the most widely adopted decentralised stablecoins.

USDC Integration Could Accelerate Ripple’s Market Goals

Ripple’s addition of USDC to its portfolio would enable the company to capture new market segments rapidly. USDC is the second-biggest stablecoin measured by market capitalisation and maintains extensive adoption among platforms, including exchanges, DeFi protocols, and payment solutions. Ripple's control of this asset would establish instant access to numerous users across the market. Ripple CEO Brad Garlinghouse arranged to make RLUSD one of the leading five stablecoin options before 2025 starts

The acquisition of Circle would give RLUSD competitive advantages through USDC's infrastructure, broad user reach, and network integrations. It would also make RippleNet and XRP Ledger-based payment services more powerful for delivering rapid, low-cost transactions. With this potential, Move Ripple plans to transition from its cross-border payment platform status into a comprehensive fintech infrastructure organisation. Ripple’s acquisition strategy matches the company’s current focus on broadening market applications across XRP and RLUSD.

Regulatory Scrutiny and Market Reaction to the Proposed Deal

Such an extensive business transaction will inevitably trigger inspections by regulatory bodies. Ripple and Circle function under constant examination from financial authorities operating in the United States and abroad. The merger of two prominent stablecoin platforms may prompt regulatory authorities to act to oversee operations while requiring multiple market permissions. On May 1, the market capitalisation of XRP fell below $130 billion after media outlets released updates about the return of the acquisition offer

The price of XRP dropped by 0.12% to reach $2.21 on the day, while other leading cryptocurrencies maintained stable levels. Market experts interpret Ripple's large-scale $20 billion offer as confirmation of its dedication to building its future business outside remittance services. After achieving deal success, Ripple’s position in stablecoins and overall standing in digital assets may substantially improve.