Ripple Rejected: Circle Aims for $10 Billion IPO Amid Crypto Revival
Amid a strong crypto market recovery and regulatory uncertainty, Circle – the issuer of the USDC stablecoin – has reportedly rejected a $5 billion acquisition offer from Ripple, as it prepares for a $10 billion initial public offering (IPO).
Clear Signals From the Market: Ripple Rejected, Circle Expects Higher
According to prominent attorney John E. Deaton – who has represented the XRP investor community in lawsuits with the US Securities and Exchange Commission (SEC) – Circle’s rejection of the acquisition offer suggests the company is aiming for a much higher valuation post-IPO.
“If Circle is confident in rejecting a $5 billion offer, it suggests that they believe their post-IPO market valuation could reach or exceed $9-10 billion,” Deaton wrote on the X platform.
He also noted that this is a clear sign of growth expectations as the regulatory and political environment becomes more favorable for the digital asset sector in the United States.
Circle’s IPO and the role of the STABLE GENIUS Act
Circle has filed an S-1 with the SEC, with plans to list on the New York Stock Exchange under the ticker symbol “CRCL.” Wall Street giants JPMorgan Chase and Citigroup will be the lead underwriters for the IPO, which is expected to take place this summer. While the current valuation target is $4-5 billion, observers say realistic expectations could be higher, especially given the current favorable environment.
A key driver of Circle’s prospects is the STABLE GENIUS Act, a bipartisan bill that would establish a regulatory framework for USD-backed stablecoins. The bill proposes two models of oversight: state-level for small issuers and federal-level for companies with over $10 billion in assets. If passed, it would be a game-changer for companies like Circle to scale within a clear, transparent, and innovation-friendly framework.
Ripple: Ambitions Unfulfilled
While Ripple has been trying to expand its ecosystem through strategic acquisitions, Circle’s rejection is a blow to those ambitions. There is speculation that Ripple could pivot to other areas of decentralized finance or expand internationally if it fails to merge with “big players” like Circle in the United States.
Stablecoin Market: Race for Valuation and Legislation
With growing support from governments and regulators, stablecoins are becoming a central pillar of the cryptocurrency market. If Circle succeeds in its IPO and achieves its expected valuation, it will be a powerful testament to the industry’s maturity and adaptability to the traditional financial system.
Conclusion:
Circle’s rejection of Ripple is not just a story of a failed deal – it signals that a new generation of crypto companies are ready to take on Wall Street, with multi-billion dollar valuations and stronger regulatory backing than ever before.