Ripple wanted to skip the hard part.

Instead of growing RLUSD from scratch, it attempted to acquire the second-largest stablecoin issuer outright.

Circle said no.

The $4–5 billion offer was reportedly rejected as “too low,” and with USDC’s $61 billion market cap, you can see why.

This was a failed shortcut to the top of the stablecoin hierarchy, and its implications will matter for years to come.

Why Ripple Went Shopping

The logic behind Ripple’s bid is easy to trace.

USDC already owns the institutional and regulatory lane. RLUSD, while growing rapidly, remains at $316 million.

Buying Circle would’ve given Ripple instant market credibility, a seat at the TradFi table, and global distribution via existing partnerships.

It also fits a pattern — Ripple spent $1.25B on Hidden Road, a prime brokerage, as part of its broader push beyond payments.

Put simply, Ripple wants to be infrastructure. Buying Circle would’ve accelerated that by years.

Circle’s IPO Ambitions Took Priority

Timing was everything here.

Circle is gunning for a public debut, with a rumored IPO valuation in the same $4–6 billion range as Ripple's.

The difference? Going public means staying independent and controlling the narrative.

Yes, revenue is up — $1.68B for the year, a 16% jump — but EBITDA and net income are down. Rising partner costs (such as Coinbase), service cuts, and higher operational budgets are squeezing margins.

Still, management believes the IPO will unlock long-term value that Ripple’s checkbook can’t match.

Why Circle Walked Away

There were three main reasons.

• Valuation: With USDC commanding a massive share and stablecoin growth accelerating, Circle likely sees a higher ceiling than Ripple was willing to pay.
• Strategy: Circle wants to be the clean, regulated digital dollar that institutions trust. Merging with Ripple, which still has regulatory baggage, doesn’t fit that image.
• Control: This was as much about governance as it was about dollars. Circle’s long game is public markets, not acquisition headlines.

This Is Bigger Than One Bid

The stablecoin sector is on a tear, projected to hit $2.8 trillion by 2030.

Tether still dominates, but USDC has carved out the compliance-first narrative.

Ripple’s RLUSD is coming at the market from a different angle — regulatory alignment, enterprise rails, and cross-border payments.

This failed takeover was a shortcut to relevance.

Had it landed, Ripple would’ve instantly leapfrogged USDT and forced a new equilibrium.

Now, it’s back to the grind.

And the War Goes On

Circle is full steam ahead on the IPO.

Ripple hasn’t ruled out a better offer, but it hasn’t upped the bid either.

In the meantime, both will continue to build: Circle on transparency, Ripple on scale and speed.

The next moves in the stablecoin war won’t be subtle. There’s too much money — and too much future — on the table.

A Defining Line in the Sand

Circle’s rejection wasn’t just about price.

It was a public flex: “We’re not for sale, and we’re not done yet.”

And that sets the tone for what comes next — not just in stablecoins, but in crypto’s fight to shape the digital dollar.