Ripple Crypto’s $5B Bid for Circle Crypto Declined: What Is Circle Crypto?
Ripple has proposed a $5 billion acquisition of Circle, which issues USDC, but their offer was declined. What lies ahead for Ripple and the XRP cryptocurrency? Is there potential for XRPUSDT to increase, and might Circle consider a better proposal? Sources suggest that Ripple’s bid was undervalued, ignoring Circle’s growth prospects.
To understand the pace at which tokenization is being embraced, observe the speed at which fiat is being transitioned to onchain. The first major success was achieved by USDT from Tether Holdings, which now stands as the largest stablecoin with over $148 billion in trading market capitalization. USDT is ranked as the third-largest cryptocurrency, only behind Bitcoin and ETH, even outpacing Solana, which hosts some of the top meme crypto token ICOs.
Larry Fink from BlackRock forecasts that tokenization will surpass a trillion dollars by 2030, representing a significant opportunity, with Ripple, the private entity behind XRP and its On-Demand Market fluidity (ODL) service, aspiring to play a pivotal role.
Ripple Proposes $5 Billion Acquisition of Circle; Offer Rejected
Following the launch of RLUSD, a stablecoin linked to the USD and primarily backed by U.S. Treasuries, Ripple is reportedly looking to broaden its influence.
Yesterday, it was reported that Ripple made a $5 billion bid to obtain Circle, the USDC issuer, but the offer was swiftly turned down.
At present, Circle ranks as the second-largest stablecoin issuer, following Tether Holdings. It holds a significant presence in the U.S. and Europe, particularly after USDT’s recent exit due to MiCA regulations.
In contrast to Tether, which has not disclosed an audit from one of the top four firms, Circle adheres to regulations and is registered with the U.S. Financial Crimes Enforcement Protocol (FinCEN). To ensure transparency, Circle releases monthly reserve verifications conducted by Grant Thornton.
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Understanding Circle and USDC: Reasons Behind the Deal’s Rejection
Insiders have indicated that the offer was dismissed as it did not adequately reflect Circle’s market stance and growth potential, which is reasonable. Circle has experienced growth, with USDC advancing quickly over recent years.
By 2025, USDC will be crucial in Decentralized finance, facilitating trading, lending, and yield farming across platforms like Ethereum and Solana.
Circle has also established collaborations with significant financial entities like Visa and Mastercard, while BlackRock has designated USDC as its preferred stablecoin for digital transactions and remittances.
Moreover, the stablecoin issuer is preparing for a potential NYSE listing soon.
Attention on XRP Cryptocurrency: What’s the Future Hold?
It remains uncertain whether Ripple will make a revised proposal. Should Circle accept, RLUSD could take on USDC’s trading market capitalization and utilize Circle’s DeFi integrations and esteemed partnerships.
WOW!
RIPPLE CTO DAVID SCHWARTZ ON ‘RLUSD’ STABLECOIN:
“RLUSD WON’T SUBSTITUTE XRP. #XRP HAS A DISTINCT ROLE AS A BRIDGE ASSET ON THE DEX!” pic.twitter.com/UbCAwkAlK4
— 𝓐𝓶𝓮𝓵𝓲𝓮 (@_Crypto_Barbie) December 11, 2024
This scenario could elevate the price of XRP cryptocurrency, potentially exceeding $3.50 and reaching $10 by year-end. If Ripple secures Circle, RLUSD, which supports XRP, might further enhance market demand.
(XRPUSDT)
On the flip side, some view the acquisition as potentially undermining XRP’s function as a payment crypto token.
Even with its advantages and a ruling affirming that XRP is not a security, positioning it alongside BTC, acknowledged by the SEC as a commodity, XRP has had difficulty gaining momentum. Currently, relatively few banks and payment providers utilize ODL for remittances, as many favor SWIFT instead.
Furthermore, an increasing volume of global remittance transactions is now being conducted via stablecoins rather than XRP, including several of the top cryptocurrencies, such as Litecoin or Stellar.
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Ripple Proposes $5B Acquisition of Circle; Bid Turned Down: Attention on XRP Crypto
- Ripple seeks $5 billion to acquire Circle; offer declined
- Circle issues USDC, among the largest stablecoins globally
- USDC is regulated and recognized in the EU
- Focus shifts to XRP crypto and RLUSD
The post Ripple Crypto’s $5B Offer for Circle Crypto Rejected: What Is Circle Crypto? appeared first on 99Bitcoins.
