XRP Faces Setback as Ripple’s Circle Acquisition Stalls

XRP could be facing a strategic challenge as Ripple’s anticipated acquisition of Circle, the issuer of USDC, appears to be crumbling after Circle filed for an initial public offering (IPO) on the New York Stock Exchange.

The potential $20 billion deal between Ripple and Circle had been in the spotlight in recent weeks, with talks reported to be nearing completion. However, Circle’s decision to go public suggests a pivot away from any private acquisition discussions, effectively putting the Ripple bid in jeopardy.

According to recent IPO filings, Circle plans to offer 24 million Class A shares, split between 9.6 million new shares and 14.4 million controlled by existing company stakeholders. The shares are expected to be priced within a range of $24 to $26, and trading will commence under the ticker symbol “CRCL” once approved by regulators.

Ripple had initially floated a smaller proposal valued around $4–5 billion earlier in April, which Circle reportedly declined. The revised $20 billion offer, had it proceeded, would have marked one of the most significant mergers in crypto industry history. It would have provided Ripple with direct access to the infrastructure behind USDC, the second-largest stablecoin after Tether (USDT).

However, Circle has so far dismissed any connection to an acquisition, making no public remarks about the rumored offer from Ripple. With the IPO filing now public, it’s increasingly evident that Circle is focusing on becoming a standalone publicly traded company instead of merging with another firm.

This development leaves Ripple grappling with an altered expansion strategy. The firm recently launched RLUSD, its own stablecoin pegged to the U.S. dollar. Despite the release, RLUSD’s scale currently pales in comparison to USDC, boasting a market capitalization of just over $310 million, while USDC sits prominently at around $61.5 billion.

Ripple’s leadership, particularly CEO Brad Garlinghouse, remains undeterred by the latest turn of events. In recent statements, Garlinghouse emphasized the company’s continued push in the stablecoin and crypto-financial sectors. He also expressed optimism about the eventual approval of an XRP-based exchange-traded fund (ETF), hinting at more institutional use cases for XRP by the end of the year. While Ripple has floated the idea of its own IPO, company executives have said it remains a long-term plan rather than a current focus.

Despite the stalled acquisition, Ripple continues exploring growth avenues. With XRP already entrenched in international banking use cases and now supported by the launch of RLUSD, Ripple’s focus appears to be shifting toward organic growth and new products rather than acquisitions. This pivot may lead to Ripple refining its competitive strategy in the stablecoin marketplace where USDC dominates.

As of now, neither Ripple nor Circle have issued any formal statements to clarify the status of the talks. With Circle firmly moving forward with its public market plans, Ripple must now reassess how it will expand and compete in the evolving stablecoin economy and maintain momentum for XRP.

Related: Expert Advice: Sell XRP If You’re Confused

The stablecoin space remains one of the most dynamic sectors in the blockchain industry, and developments such as these underscore the competitive and strategic maneuvers companies like Ripple are navigating in real time.