XRP Firm Ripple Rivaling Coinbase in Race for Circle

XRP-focused company Ripple is reportedly vying with Coinbase to acquire Circle, marking a notable development in the cryptocurrency and fintech sectors. Conversations around this potential acquisition are gaining traction as both firms seek to bolster their positions in the evolving stablecoin space.

Based on recent reports from industry insiders, discussions are underway between Ripple, private equity stakeholders, and banking representatives as Ripple pursues a potential purchase of Circle. This strategic move comes soon after Bloomberg mentioned that Circle turned down Ripple’s initial acquisition bid, reportedly valued at up to $5 billion, believing the offer was insufficient. While speculations have emerged about Ripple potentially increasing their bid to $20 billion, these rumors have not been officially confirmed.

Circle, best known for co-founding the USD Coin (USDC) in collaboration with Coinbase through the Center Consortium in 2018, has shown a clear preference towards deepening ties with Coinbase. Sources indicate that Circle would rather merge with Coinbase than Ripple. Despite this preference, Circle is progressing with its previously announced plan to go public, a move aimed at broadening its footprint in the financial markets.

Ripple, on the other hand, is in a solid financial position to make large-scale investments, thanks primarily to the significant value of its XRP reserves, which are estimated to exceed $90 billion. These holdings place Ripple in a strong position to negotiate substantial acquisitions or strategic partnerships that could reshape its role in the digital currency ecosystem. As noted by Bitwise President Teddy Fusaro, Ripple’s financial strength could enable it to acquire several major players in the crypto space.

Both Ripple and Coinbase have demonstrated ambitious acquisition strategies in 2025. Ripple recently acquired Hidden Road, a prime brokerage firm, in a deal valued at $1.25 billion. Simultaneously, Coinbase made headlines by purchasing derivatives exchange Deribit for nearly $3 billion, making it the largest merger and acquisition deal in the history of digital currencies.

The possible acquisition of Circle would be a significant milestone in Ripple’s strategy to expand its influence well beyond the XRP payments realm. It could allow Ripple to gain deeper access to the stablecoin market and strengthen its regulatory standing and institutional partnerships. With the crypto industry maturing and institutional adoption rising, control over stablecoin ecosystems like USDC could become a crucial advantage.

This unfolding competition between Ripple and Coinbase underscores the growing importance of stablecoin infrastructure within the broader financial landscape. As the industry witnesses increased regulatory clarity and surging investor interest, firms with strong capital backing and forward-looking strategies, such as Ripple and Coinbase, are positioning themselves to lead in the next phase of blockchain-powered finance.

The outcome of these acquisition talks could meaningfully reshape the power balance among U.S.-based crypto companies, especially those aiming to offer comprehensive financial solutions that bridge traditional finance and decentralized technology.

With Ripple’s robust war chest and Coinbase’s established relationship with Circle, the situation remains dynamic. Whether Ripple can sway Circle’s intentions or if Coinbase will solidify the merger remains to be seen, but the implications for the XRP ecosystem and the broader crypto market will undoubtedly be significant.

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

As the competition intensifies, investors and industry watchers will be closely monitoring how Ripple’s involvement could steer the future of Circle and USDC, and what this means for the trajectory of XRP in the global digital asset space.