Ripple Denies Circle Acquisition Rumors, CTO Clarifies $6B Offer Was a Joke as Circle IPO Attracts Investor Frenzy

Published: 2025-06-05 05:57:47 |

Ripple has directly denied rumors about acquiring Circle, the issuer of the USDC stablecoin, amidst growing media speculation. Initial reports alleged Ripple attempted a $4-5 billion buyout of Circle, later escalating to an unverified $20 billion offer. Ripple CEO Brad Garlinghouse refuted these claims, emphasizing that no proposals or negotiations took place. Further confusion arose when Ripple’s CTO David Schwartz jokingly referenced a $6 billion offer on social media, but he has since clarified that his statement was not serious. These rumors briefly fueled a price surge in XRP but were followed by corrections after official denials. Meanwhile, Circle is moving ahead with an initial public offering (IPO) that is reportedly oversubscribed more than 25 times, as the firm seeks a $7.2 billion valuation, highlighting strong market appetite for regulated stablecoin projects. The episode underscores heightened trader interest in stablecoin issuers, susceptibility to market volatility from acquisition rumors, and the rapid spread of misinformation via social media. With both Ripple and Circle publicly denying any imminent merger, no acquisition actions are expected in the short term.

Neutral

The clarification from both Ripple’s CEO and CTO that there were no genuine acquisition talks with Circle has led to a quick correction after an initial, short-lived rise in XRP’s price due to unfounded rumors. As both companies deny any intentions for a merger or acquisition, the market should stabilize, and no further price impact is expected in the short term. While Circle’s oversubscribed IPO reflects robust investor interest in regulated stablecoin firms and could boost sector confidence, it does not directly affect XRP or USDC pricing. The episode highlights the crypto market’s sensitivity to acquisition rumors and social media speculation, but with official denials, traders can expect market conditions to return to normal.