Circle Rejects Ripple $5 Billion Offer Amid SEC Quiet Period

• Ripple’s $5B bid for Circle rejected, future deal uncertain

• Ripple and Circle continue to lead stablecoin market despite rejected bid

Ripple recently made headlines when it offered to acquire stablecoin issuer Circle Internet Group Inc. for between $4 billion and $5 billion. However, Circle rejected the proposition because it considered the offer value to be inadequate. The future status of an agreement between the two cryptocurrency businesses seems doubtful.

Circle Focuses on IPO, Rejects Ripple’s Proposal

Initially, Ripple submitted to Circle a proposal that appeared reasonable to its team. The proposed offer determined the estimated dollar value of Circle’s USDC stablecoin platform. The market capitalization of USDC reached approximately $61 billion, yet Circle insisted its business value situation remained higher than Ripple’s valuation proposal. The board of Circle decided not to discuss the proposed takeover with the potential buyer after rejecting the bid.

Meanwhile, Ripple continually makes new offers for potential collaboration with its business rivals. Multiple sources linked to the situation indicate that Ripple continues to research their acquisition options. Ripple has not indicate to the public regarding future plans to make any improved acquisition proposal. A representative from Ripple chose not to provide any comments regarding the discussions.

For its part, Circle maintains its independent strategic direction while not decide on a new bid. The company registered as an S-1 document with the U.S. Securities and Exchange Commission this month. The company Circle continues to move forward with its highly-anticipated initial public offering. Under SEC protocol, Circle must maintain a quiet period after it submits its filing to the regulators. During this period, the company remains forbidden from disclosing extensive financial forecasts and responding to marketplace speculations.

On the other hand, the Circle representative stated that the company refrains from addressing speculative market information. During its quiet SEC period, Circle has been unable to disclose information about its financial plans. Circle dedicates its resources to completing its IPO since they have no time to consider acquisition proposals.

The company Ripple remains focused on developing new products for market expansion. In December, Ripple launched the RLUSD stablecoin into its marketplace. The market capitalization of RLUSD reaches approximately $317 million, yet remains lower than USDC. However, Ripple plans to increase RLUSD’s adoption in the future.

Ripple and Circle Continue to Lead Stablecoin Market

In April, Ripple committed to a vital acquisition through its purchase of Hidden Road which operates as a digital-asset prime broker, at $1.25 billion. The company demonstrates strong financial dedication to secure important business acquisitions. The unsuccessful Circle acquisition indicates that Ripple should evaluate its path toward corporate acquisitions.

At the same time, the entire crypto industrial sector shows an increasing trend in transaction activities. Public listings and alternative exit options are under consideration by the companies BitGo Inc., Gemini and Bullish Global. The market shows indicators that it will experience numerous listings, which will fundamentally transform this sector.

Even though Ripple and Circle failed in their acquisition attempt, they continue to dominate the stablecoin market. Ripple’s payment network and XRP token maintain their position as vital suppliers to financial institutions worldwide. Circle’s USDC stablecoin functions as a trusted digital asset that serves traders and investors worldwide.

Looking ahead, the company will initiate its IPO launch when official regulatory clearance is granted. Companies need approximately four to six weeks after filing their S-1 document to start sharing their stocks in the market. Many variables affect the specific time duration. The financial industry will closely follow any potential return of a Ripple acquisition attempt from Ripple.

Lastly, Ripple’s proposed buying offer, estimated at $4 billion to $5 billion failed to win approval from Circle which considered the figure to be too low. Circle takes priority in its SEC-registered IPO so it declines to talk about speculative industry rumors. The booming crypto industry will lead both companies to follow separate growth objectives. The final result of this fierce bid might shape future business transactions among leading companies in this industry.