Ripple $20 Billion USDC Bid Might Be off as Circle Officially Files for IPO

Circle Files for IPO, Spurring Doubt Over Ripple's Acquisition Bid

The stablecoin space is poised for a significant shift, as Circle, the company behind the popular USDC stablecoin, has officially filed for an initial public offering (IPO) on the New York Stock Exchange. This move casts doubt on the recent $20 billion acquisition offer from Ripple, the blockchain company behind the XRP cryptocurrency.

According to the filing, Circle plans to offer 24 million Class A shares, with 9.6 million coming from the company itself and 14.4 million from existing shareholders. The expected share price range is between $24 and $26, and the company will trade under the ticker symbol "CRCL".

The IPO announcement comes just weeks after reports of high-level talks between Ripple and Circle, with industry insiders suggesting that a deal was nearing completion. Ripple had previously made a lower offer in the $4-5 billion range, which Circle had declined. The follow-up $20 billion bid, if accepted, would have been one of the largest mergers in the crypto industry, giving Ripple direct control over the infrastructure powering the second-largest stablecoin after Tether's USDT.

However, Circle has since denied reports of any pending acquisition and has not acknowledged the offer publicly. The company's decision to pursue a public listing suggests that it is choosing the public markets over a private sale, at least for the time being.

For Ripple, this development could potentially stall its strategic move to expand its footprint in the dollar-backed stablecoin sector. Ripple's own stablecoin, RLUSD, was recently launched and is already in circulation, but it remains significantly smaller than USDC, with a market cap of just over $310 million compared to USDC's $61.5 billion.

Despite this setback, Ripple continues to push forward with other plans. CEO Brad Garlinghouse has expressed confidence in the approval of an XRP-based exchange-traded fund (ETF) before the end of the year and noted that the company's IPO plans are not ruled out, though they are not a priority at the moment.

As the stablecoin landscape continues to evolve, the outcome of the potential acquisition talks between Ripple and Circle remains uncertain. Both companies have yet to provide an official update on the status of the discussions.