XRP: Ripple Faces Setback as Circle IPO Oversubscribed

XRP is once again in the spotlight as Ripple’s strategic aspirations face unexpected headwinds following an intense investor rush into Circle’s IPO. The remarkable interest in Circle’s public offering now adds complexity to Ripple’s reported acquisition intentions, raising questions about the future moves of the blockchain-based payments firm.

According to a recent report by Zero Hedge, Circle—issuer of the popular USD Coin (USDC)—has witnessed investor demand that exceeds its IPO share offering by over 25 times. This staggering level of oversubscription points to strong confidence in Circle’s business model and market position, especially as it gears up to go public on June 5, 2025.

Oversubscription in an IPO signifies that requests for shares surpass the available supply, reflecting investor eagerness and often hinting at future stock performance. For Circle, this bodes well for its debut on the New York Stock Exchange under ticker symbol CRCL, and it could also affect companies like Ripple that have had acquisition interests.

Circle’s IPO Attracts Major Backers

Circle launched its IPO on May 27, aiming to raise $624 million by offering 24 million Class A shares within a $24–$26 range. This pricing valued the company between $5.65 billion and $6.71 billion. However, due to rapidly growing interest, the company expanded the offer to 32 million shares, pushing its valuation closer to $7.2 billion.

High-profile investors are jumping in. ARK Invest, led by Cathie Wood, has committed $150 million to Circle’s IPO, while investment giant BlackRock is also said to be involved. The investor enthusiasm strongly suggests that Circle may be entering the market at a lower valuation than its intrinsic worth, setting the stage for powerful trading performance once the stock launches.

Supportive Regulatory Developments

In addition to strong market interest, Circle is benefiting from a favorable regulatory climate. The U.S. Senate recently advanced the GENIUS Act, aimed at providing clearer legislation for stablecoins. More importantly, President Donald Trump has publicly supported these regulatory measures, indicating a willingness to sign them into law before the upcoming Congressional recess in August.

This regulatory momentum lends credibility to Circle’s business, bolstering investors’ confidence. At present, Circle oversees $62 billion in circulating USDC—about 27% of the stabilized coin market. While its revenue reached $1.68 billion in 2024, net profits dropped to $155.7 million compared to $267.5 million the year before. Still, that hasn’t dimmed investor sentiment, given the potential long-term gains.

Ripple’s Strategic Moves Complicated

Ripple has reportedly been eyeing Circle as a strategic acquisition target, possibly as a means to strengthen its grip on digital asset infrastructure. Initial reports noted that Ripple offered around $5 billion to acquire Circle, an offer that was rejected. Subsequent reports indicated Ripple increased its bid to somewhere between $9 billion and $11 billion.

While Ripple CEO recently denied making a $10 billion offer, he did not entirely close the door on acquisition discussions. Nonetheless, Circle has publicly declined any claims that it has engaged in talks with Ripple or Coinbase regarding a takeover.

Given the overwhelming interest in its IPO and a likely surge in value post-public debut, Circle is now in a much stronger negotiating position. The oversubscription suggests that staying independent could be more beneficial to Circle and its stakeholders, making any possible acquisition by Ripple significantly more expensive and uncertain.

For XRP holders and Ripple supporters, this development could be pivotal. Ripple’s ambitions of expanding its financial ecosystem via a Circle acquisition now seem less feasible unless it’s willing to significantly increase its offer—if Circle is even receptive at this point. As Circle gains momentum in public markets, Ripple may need to reassess its broader strategy in the stablecoin and payments sector.

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

In conclusion, Circle’s IPO success story is not only a milestone for the stablecoin issuer but a curveball for Ripple’s acquisition plans. Only time will tell whether Ripple recalibrates its approach, but one thing is clear: XRP’s ecosystem continues evolving in an increasingly competitive and rapidly maturing crypto landscape.