Ripple CEO Brad Garlinghouse has firmly refuted recent rumors claiming that the company had made an offer to acquire Circle, the issuer of the USDC stablecoin, for as much as $5 billion. The speculation, which had been circulating in the crypto community for several weeks, has now been dispelled by Garlinghouse, who addressed the matter publicly at the XRP Las Vegas event.
His denial came as Ripple continues to push forward with its own stablecoin initiatives, including the RLUSD stablecoin, which is designed to function natively on the XRP Ledger and Ethereum.
The rumors gained significant traction due to Ripple's growing interest in the stablecoin space. Many analysts speculated that Ripple's stablecoin ambitions, coupled with its acquisition of Hidden Road, hinted at a potential merger with Circle, which could give Ripple immediate dominance in the stablecoin market. However, Garlinghouse's clear denial has quelled these rumors, with the CEO emphasizing that Ripple has no intentions of acquiring Circle.
During a panel discussion at the XRP Las Vegas event, Garlinghouse directly addressed the acquisition rumors. Moderated by Georgetown Law professor Chris Brummer, Garlinghouse explained that Ripple had never pursued an acquisition of Circle. "We did not pursue an acquisition of Circle," Garlinghouse stated unequivocally, shutting down the speculation once and for all.
The clarification came in response to persistent rumors that Ripple had made an offer to acquire Circle, with some reports suggesting a $20 billion bid, while others claimed Circle had rejected the offer due to its perceived low valuation. Garlinghouse did not provide specific details about any potential price points for such an acquisition, but he made it clear that Ripple was not involved in such discussions.
The rumors had taken hold amid Ripple's ongoing efforts to expand its presence in the stablecoin market. In December 2024, Ripple secured approval from the New York Department of Financial Services (NYDFS) for its RLUSD stablecoin, a US dollar-backed token designed to work natively on the XRP Ledger and Ethereum. This move signaled Ripple's growing ambition to offer a more regulated and efficient alternative to other stablecoins like USDC.
Ripple’s RLUSD: A Layer for Tokenized Finance
Although speculation around a potential acquisition of Circle has now been dispelled, Ripple’s interest in the stablecoin market remains strong. The company has positioned RLUSD not as a direct competitor to USDC, but rather as a foundational layer for tokenized finance. This strategy focuses on using RLUSD as on-ledger collateral, allowing for transactions to be memorialized on the XRP Ledger, which could pave the way for more efficient tokenized financial products.
In contrast to USDC’s broad use case as a stable medium of exchange, Ripple is positioning RLUSD as a more specialized asset for tokenized finance. This could include applications in areas like DeFi (decentralized finance), tokenized securities, and other blockchain-based financial services, all of which could be integrated into Ripple’s XRP Ledger ecosystem.
While Ripple is pursuing its own stablecoin ambitions, Circle has charted a separate course, reinforcing its independence by filing for an initial public offering (IPO) with the U.S. Securities and Exchange Commission (SEC). The filing reflects Circle's commitment to regulatory transparency and its long-term plans for operating as a publicly traded company. The move also underscores Circle’s focus on growing USDC’s adoption as the dominant stablecoin across the global crypto ecosystem.
The IPO filing further solidifies Circle’s long-term vision and its strategy of maintaining independence within the stablecoin space. Unlike Ripple, which has now shifted its focus toward a hybrid model for integrating traditional finance (TradFi) with digital assets, Circle is aiming for broader market adoption through full regulatory compliance and a clear pathway toward public ownership.
The Future of Ripple’s Stablecoin and Market Position
Following Garlinghouse's comments, the debate surrounding Ripple’s role in the stablecoin market and its long-term vision remains open. Ripple’s focus on creating a stablecoin that is tied to the XRP Ledger presents a unique opportunity for the company to differentiate itself from the growing competition in the digital asset space. RLUSD’s role as collateral on the XRP Ledger offers a compelling use case for tokenized finance, which could be pivotal as the sector continues to evolve.
Ripple’s ability to scale its stablecoin project will depend on several factors, including regulatory approvals, market adoption, and competition from established players like Circle and Tether, whose USDT remains the most widely used stablecoin in the crypto market. The industry’s growing interest in central bank digital currencies (CBDCs) and the increasing use of stablecoins in institutional settings could also play a role in shaping Ripple’s strategy.
Ripple’s broader vision for the future of cryptocurrency and traditional finance is central to its operations. Garlinghouse has repeatedly emphasized Ripple's stance on creating a hybrid financial system, one where traditional financial institutions (TradFi) and decentralized finance (DeFi) work together rather than compete. This hybrid approach could be key to the company’s long-term success as it continues to push the envelope with the XRP Ledger and other financial products.
In this context, Garlinghouse has criticized infighting within the crypto sector, emphasizing that Ripple’s donation of the “Satoshi skull” was part of an effort to engage diplomatically with the community. This gesture highlighted Ripple’s commitment to fostering collaboration within the industry, rather than engaging in internal conflicts that could hinder the progress of the broader blockchain ecosystem.
Ripple’s focus on a hybrid approach to finance resonates with the growing demand for interoperability between traditional financial systems and blockchain-based financial services. By aligning itself with these values, Ripple aims to bridge the gap between the old and new worlds of finance, creating an ecosystem that incorporates both traditional assets and digital currencies.
XRP Price Impact
The broader crypto market has been closely watching Ripple’s movements, especially in relation to its native token, XRP. Following Garlinghouse’s firm denial of the Circle acquisition rumors, XRP saw a price increase of nearly 3% within 24 hours, bringing the token to a price of $2.25 at the time of writing. This uptick in price signals that the market is responding positively to Ripple's clear stance on its future direction, with investors seemingly reassured that Ripple’s focus on innovation within tokenized finance and hybrid finance models remains intact.
The rumors surrounding Ripple’s acquisition of Circle have now been dispelled, but Ripple’s stablecoin ambitions and hybrid vision for finance continue to be key drivers of its strategy. As Ripple pushes forward with RLUSD and works toward integrating blockchain technology with traditional financial systems, it remains to be seen how the company will navigate the complex landscape of stablecoins, regulations, and market competition.
Ripple’s approach to building a stablecoin ecosystem on the XRP Ledger has the potential to set new standards for tokenized finance, and its ongoing efforts to collaborate with the broader crypto industry suggest that the company’s influence will continue to grow. With the market’s renewed interest in XRP and the company's clear strategic direction, Ripple appears well-positioned to remain a significant player in the evolving world of digital assets.