Crypto Researcher SMQKE Comments on a Recent Bloomberg Report That Claims Ripple Has Made a $4B to $5B Offer to Acquire Circle

Crypto researcher SMQKE has commented on a recent Bloomberg report that claims that Ripple has made a $4 billion to $5 billion offer to acquire Circle, the company behind the USDC stablecoin.

Crypto researcher SMQKE has made some interesting comments about a recent Bloomberg report that claims that Ripple is making a $4 billion to $5 billion offer to acquire Circle, the company behind the USDC stablecoin.

In response, SMQKE characterized the potential acquisition as a “stablecoin superplay,” laying out a detailed rationale for why such a deal could be transformative for Ripple and the broader digital asset ecosystem.

At the heart of SMQKE’s argument is Circle’s recent IPO filing, which revealed previously undisclosed structural weaknesses. Despite Circle generating $1.68 billion in revenue in 2024, its net income was only $156 million.

According to the documents provided by SMQKE, one of the primary reasons for this profitability gap is that Coinbase continues to receive 50% of USDC’s reserve revenue. This arrangement, however, is said to remain in place even after Circle paid $210 million in stock to acquire Coinbase’s stake in Centre, the consortium that governs USDC.

“A MASSIVE PROFIT LEAK.”

SMQKE described this as a “massive profit leak” that burdens Circle’s margins and operational flexibility.

This contrasts with Ripple’s multi-stream revenue model, which includes XRP sales to institutional investors, cross-border transaction fees, interest income from loans, and investment returns.

According to SMQKE, the potential acquisition would allow Ripple to absorb Circle’s revenue base while using its own infrastructure to optimize operational efficiency. By renegotiating or eliminating the Coinbase revenue-sharing deal, Ripple could substantially enhance Circle’s profit margins.

Additionally, integrating USDC into Ripple’s existing services — specifically RippleNet and Liquidity Hub — would bring regulatory-strengthened stablecoin functionality into Ripple’s payment and liquidity ecosystem.

This merger would also give Ripple direct access to over $60 billion in circulating USDC, significantly boosting their scale and presence across global markets.

SMQKE highlighted the synergy between XRP’s speed and liquidity utility and USDC’s regulatory acceptance, which would create what they termed a “two-token juggernaut.”

A Strategic Fit in a New Regulatory Era

SMQKE noted that Ripple is in a strong position to carry out a deal like this, having already faced and overcome major legal challenges with the SEC. This track record gives the company added credibility at a time when regulatory compliance is becoming more important in the digital asset space.

Meanwhile, Circle — despite its strong market position — appears to be weighed down by costly legacy partnerships and is facing renewed scrutiny as it prepares to go public.

If the acquisition were to proceed, Circle would gain more than just capital. SMQKE argued that Circle would benefit from Ripple’s operational maturity, legal strength, and direct integration into decentralized finance. These advantages could offset Circle’s vulnerabilities and accelerate its evolution from a stablecoin issuer to a component of a larger payments and liquidity ecosystem.