Table of Contents
Ripple CEO Denies Acquisition Rumours While Circle Readies for IPO
Ripple’s CEO, Brad Garlinghouse, has firmly denied any intentions to acquire Circle, the company behind the USDC stablecoin. During a private discussion held in Las Vegas, Garlinghouse clarified to Georgetown Law Professor Chris Brummer that Ripple has never pursued a purchase of Circle and currently has no interest in acquiring the business.
In April, speculation arose when Bloomberg reported that Ripple had made a bid for Circle, which was subsequently rejected. According to the reports, Coinbase may have intervened with a competing offer. However, a representative from Circle later confirmed that the company is “not for sale”.
Ripple’s Vision and Initiatives
While Ripple distances itself from the acquisition narrative, it is advancing its plans to build essential infrastructure connecting traditional finance with the cryptocurrency space. This ambition includes the US dollar-pegged stablecoin, RLUSD, which Ripple introduced recently. Despite its promising start, RLUSD’s market capitalisation is modest at US$310 million (approximately AU$480 million), particularly when compared to USDC’s substantial US$61.5 billion (about AU$95 billion).
Furthermore, Garlinghouse announced ongoing pilot projects focusing on real estate tokenisation in collaboration with regulatory bodies in the United Arab Emirates, highlighting Ripple’s commitment to fostering crypto adoption within established financial systems.
Circle’s Upcoming IPO
In a significant move signalling its next phase, Circle is gearing up for an initial public offering (IPO) under the ticker CRCL, with plans to issue 32 million Class A shares priced between US$27 (AU$41.82) and US$28 (AU$43.37). This IPO seeks to establish a valuation of about US$7.2 billion (AU$11.15 billion), as Circle seeks to grow its business and compete in the burgeoning stablecoin market.
Conclusion
As the competition within the stablecoin landscape intensifies, both Ripple and Circle are undertaking strategic initiatives to solidify their positions. Ripple is focusing on establishing itself as a facilitator for the integration of cryptocurrency within traditional finance through investments and innovations, while Circle is paving its way towards public trading to raise its profile and resources further.
