Is Ripple Gaining an Advantage Over Coinbase in the Race for Circle?

Summary

• Ripple and Coinbase are in a competitive bid to acquire Circle, with offers reportedly exceeding $10 billion.
• Circle may prefer Coinbase due to their history with USDC, yet some believe Ripple has a stronger chance of winning the bid.

The Competitive Landscape

Recently, Circle, the organization behind the well-known stablecoin USDC, announced plans to list its shares on the New York Stock Exchange under the ticker symbol CRCL. However, these plans could be jeopardized by potential acquisition offers from two major players in the cryptocurrency sector.

A recent report indicated that Ripple and Coinbase are both prepared to invest billions for a takeover. This news has generated extensive discussion within the crypto community, attracting various opinions from users on social media.

An influential angel investor noted that inside sources suggest Ripple might lead the bidding process. He also mentioned that the overall cost could surpass $10 billion.

Just a few weeks back, some reports indicated that Circle had received an offer of approximately $4-$5 billion from Ripple, which was turned down as insufficient. Speculation then arose that Ripple enhanced its offer to $20 billion, though these claims remain unverified.

The report suggests Circle favors a sale to Coinbase due to their previous collaboration. Together, they created the Centre Consortium in 2018 to launch USDC, a stablecoin linked to the US dollar. However, in 2023, the consortium was dissolved, with Circle taking full control of the token’s governance and issuance.

Ripple’s Financial Strength

The firm behind XRP has demonstrated its ability to engage in substantial financial dealings. Earlier this year, it acquired the brokerage firm Hidden Road for $1.25 billion, marking one of the largest transactions in the crypto sector.

“The financial aspect is secondary. This acquisition represents a unique chance for crypto to engage with robust and trusted traditional markets, and vice versa,” said Ripple’s CEO during the announcement.

The CEO also mentioned that Hidden Road will utilize XRPL for certain post-trade settlements, while various analysts believe this development could significantly impact XRP’s functionality. One prominent user on social media shared insights supporting this perspective.