Ripple’s Chief Technology Officer, David Schwartz, has dismissed rumors about a multibillion-dollar acquisition attempt targeting Circle. According to his statement, the claim that Ripple offered $6 billion to acquire the USDC issuer was intended as a joke.
Schwartz later explained that he deleted the post due to concerns that some readers might interpret it literally. He provided this explanation after many people speculated following media reports that Ripple and Circle had informal discussions.
In late April, Bloomberg shared that Circle had turned down a $5 billion takeover proposal offered by Ripple. The information caused many on social media to wonder if Ripple’s value had reached as high as $20 billion. Ripple CEO Brad Garlinghouse has come out publicly to say that $20 billion was not mentioned in any discussion.
IPO Oversubscription Signals Strong Interest in the Stablecoin Market
Circle has ended all discussions about potential acquisitions and is now looking ahead to its highly expected initial public offering. The number of shares requested for the IPO, which is priced at $31, is more than 25 times higher than the amount available. It suggests that many financial institutions want to explore the use of stablecoins.
The fintech firm is targeting a $7.2 billion valuation as the company prepares for its IPO. A recent media report shows that IBIT has agreed to acquire 10% of Circle’s shares during the IPO. It could take decisions from the Federal Reserve and a rate drop by 150 basis points before 2026 to make Circle’s business profitable in the long term, market analysts believe.
It was reported that Coinbase was also one of the firms that showed interest in purchasing Circle. Nevertheless, because the IPO is right around the corner, the company has officially stopped these discussions.
Conclusion
Although there were recent reports that Ripple wanted to acquire Circle for $20 billion, the company has denied this. Those following the IPO will closely watch the performance of stablecoins as the economy changes.
