There is information floating around in the crypto community that Ripple offered to buy rival stablecoin Circle. This could be huge for many reasons, let’s understand why.
Analyst ‘SMQKE’ gave probably the best explanation on X how important this is for Ripple and XRP.
What you'll learn 👉
The Power of Combining XRP and USDC
The potential acquisition of Circle by Ripple would create a powerful synergy between XRP and USDC. While XRP excels as a liquidity asset, USDC serves as a regulated stablecoin. This would give Ripple control over both value movement through its payment rails and value storage through stablecoin reserves.
Circle has shown impressive revenue numbers with $1.68 billion in 2024, but their net income was only $156 million. A key issue is that Coinbase still takes 50% of USDC reserve revenue, even after Circle paid $210 million to exit their partnership consortium. This arrangement leaves Circle financially constrained despite the popularity of their stablecoin.
‼️RIPPLE ACQUIRING CIRCLE WOULD BE A STABLECOIN SUPERPLAY‼️
— SMQKE (@SMQKEDQG) April 30, 2025
Circle’s upcoming IPO filing just exposed a major weakness. Coinbase still takes 50% of USDC’s reserve revenue even after Circle paid $210M to cut them out of the consortium. That’s a massive profit leak, and Ripple has… https://t.co/1XaQQofeOR pic.twitter.com/k0kfR1GTZ4
Ripple, on the other hand, has multiple revenue streams including XRP sales, payment processing fees, and interest income. Unlike Circle, Ripple doesn’t have major revenue-sharing obligations dragging down its profits. Additionally, Ripple has emerged legally hardened after surviving its lengthy battle with the SEC.
Strategic Benefits for Both Companies
For Ripple, acquiring Circle would bring immediate scale with USDC’s $60+ billion in circulation. Ripple could potentially restructure or eliminate the costly Coinbase revenue split that currently burdens Circle.
If the deal goes through, Ripple could easily add USDC to its RippleNet and Liquidity Hub products. XRP and USDC would work together nicely – XRP moves money across borders quickly while USDC offers stability and meets regulatory requirements.
Circle would benefit from Ripple’s legal team and business operations. They could finally break free from relying so heavily on Coinbase. Circle would also get access to Ripple’s DeFi tools and business connections, which could help them make more money.
People who hold XRP might see more uses for their tokens as XRP and USDC start working together. The combined company would control both how money moves (through their payment network) and how value is stored (through the stablecoin). This makes for a more complete solution for digital payments.
*RIPPLE IS SAID TO HAVE OFFERED TO BUY STABLECOIN RIVAL CIRCLE
— db (@tier10k) April 30, 2025
*RIPPLE OFFERED $4B TO $5B FOR CIRCLE: BBG
But there are some concerns worth noting. Regulators might have issues with this merger, especially in the US where both companies have faced legal challenges. We don’t know if Circle actually wants to be bought, since they’ve talked about going public before.
There could also be monopoly concerns if one company controls both a major payment system and a popular stablecoin. And the XRP and USDC communities might not agree on future plans.
Read also: Crypto Influencer Posts Viral XRP Price Prediction
Ripple’s RLUSD and the Circle Strategy
Ripple already has its own stablecoin called RLUSD that’s gaining users. So why would they want to buy Circle? It’s probably not just about entering the stablecoin market.
By buying Circle, Ripple would remove one of its biggest competitors. This would help Ripple become stronger in the stablecoin world.
Taking over USDC would also give Ripple many more users right away. USDC is already used by lots of people and works with many crypto platforms.
Ripple could connect USDC with their existing payment systems like RippleNet and Liquidity Hub. This would create a more complete financial system that could do more things for more people.
We know that Ripple reportedly offered $5 billion to buy Circle, but Circle said it wasn’t enough. Ripple hasn’t given up though, and might make another offer in the future.
Whether this deal happens or not, it shows how Ripple and USDC could work well together in the future of finance. XRP could handle the movement of money while USDC provides a stable store of value.
Read also: We Asked AI to Predict Ripple (XRP) Price in May
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