Ripple shows aggression in business strategy: Providing $20 billion in proposal for acquisition of Circle.
Taking On the Stablecoin World: Ripple's $20 Billion Offer for Circle
In a move to dominate the global stablecoin market, Ripple has escalated its buyout bid for Circle, the issuer of the second-largest stablecoin USDC, to a whopping $20 billion.
Six Figures, Baby!
Circle initially shunned Ripple's initial bid ranging from $4 to $5 billion, with the company focusing on its IPO process[1][2][3]. However, recent rumblings suggest that Ripple isn't joking around, offer in tow, and amped to get serious about this deal[5].
Ripple's Chief Technology Officer, David Schwartz, casually commented on this situation, "Six billion dollars, but our final offer is this." Ain't that a kicker?
The Rise of RLUSD
Ripple's very own stablecoin, RLUSD, is set to play a significant role in this power play. RLUSD, featuring corporate payments and bi-directional usage in DeFi, has been seamlessly blended into the Ripple Payments system. With a market cap of $300 million, RLUSD is poised to make waves in the financial world[4].
Ripple's focus on the Middle East market seems fruitful, with a reported 40% of institutions in the region relying on Ripple's infrastructure[4].
Hidden Road: Ripple's Game-Changer Acquisition
Last month, Ripple dropped a cool $1.25 billion to snatch up Hidden Road. A non-bank prime broker dealing with an annual trading volume of $3 trillion, Hidden Road marks Ripple's entrance into the prime broker arena, making it the first global powerhouse in the crypto sector[6].
Legal whiz John Deaton foresees Ripple making a splash in the corporate realm thanks to this move[6].
Legal Hurdles
Ripple CEO Brad Garlinghouse hinted that the company's current $11 billion valuation could be at stake if they opt for an IPO[7]. If the Circle acquisition is to go down, a few roadblocks need to be cleared:
- The resolution of Ripple's lawsuit with the SEC.
- The establishment of a solid legal framework.
- The ongoing SEC lawsuit remains the biggest challenge for Ripple's expansion plans[7].
Gearing Up for Dominance
Should the Circle acquisition push through, Ripple would find itself controlling two major stablecoins: USDC and RLUSD. This position would propel Ripple to the frontlines of corporate payments, the stablecoin infrastructure, and global exchange systems, making it a force to be reckoned with[7].
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Sources:
- SwanWatcher
- CoinDesk
- CoinTelegraph
- Bloomberg
- Forbes
- DeatonLaw.com
- CoinTelegraph
In light of Ripple's intention to dominate the stablecoin market, David Schwartz, Ripple's Chief Technology Officer, hinted at a potential escalation of their offer for Circle, stating, "Six billion dollars, but our final offer is this." As Ripple's very own stablecoin, RLUSD, gains momentum, with corporate payments and bi-directional usage in DeFi seamlessly integrated into the Ripple Payments system, the company's focus on the prime broker arena, enabled by the acquisition of Hidden Road, signals a strategic shift towards business expansion, leveraging technology to establish itself as a formidable player in the finance industry.
