Ripple Doubles Its Bid to Acquire Circle, Outbidding Coinbase with a Staggering $11 Billion Offer

The crypto world is buzzing with speculation after reports emerged that Ripple has doubled its bid to acquire Circle, the issuer of the USDC stablecoin, from $5 billion to a staggering $11 billion.

Crypto Twitter was abuzz with speculation on Thursday, after reports emerged that Ripple had doubled its bid to acquire Circle, the issuer of the USDC stablecoin, from $5 billion to $11 billion.

This dramatic move appears to be Ripple’s latest strategy to secure dominance in the stablecoin market — and perhaps a response to mounting competition from Coinbase (NASDAQ:COIN), which is also rumored to be eyeing a takeover of Circle.

Though neither Ripple, Circle, nor Coinbase have yet made any official confirmations, the rumor mill is working overtime. If true, this would be one of the most aggressive acquisition bids in recent crypto history, potentially shaping the future of stablecoins and the broader digital asset ecosystem.

Why Does Ripple Want Circle?

The primary draw in this potential acquisition is USDC, the world’s second-largest stablecoin with a market capitalization of around $61 billion. Circle’s flagship product has become a foundational asset across DeFi platforms, centralized exchanges, and payment networks — and Ripple, best known for its XRP token and global payments network, sees a strategic opportunity to expand its reach by acquiring it.

Just last month, it was reported that Ripple had made an offer of between $4 billion and $5 billion for Circle. However, this initial bid was reportedly turned down by Circle.

But in the rapidly changing dynamics of the crypto sphere, things appear to have moved swiftly. With Coinbase now said to be preparing a counteroffer for Circle, reportedly enlisting the help of investment bank Moelis & Co, Ripple has reportedly decided to take a more aggressive stance.

According to reports from The Tokenizer and Blockworks, Ripple has now significantly increased its bid, offering a staggering sum of $9 billion to $11 billion to acquire Circle.

This move, if successful, would provide Ripple with an immediate footprint in the stablecoin sector, allowing them to diversify beyond cross-border payments and potentially challenge Tether’s USDT in the largest stablecoin spot.

It would also bring Ripple closer to achieving full regulatory compliance in the U.S. — an increasingly critical factor in the post-FTX regulatory climate.

Is Ripple Financially Able to Outbid Coinbase?

Now, chatter on social media suggests that investment firm Draper New Age (DNA) is pivoting its attention to Ripple (NYSE:PYPL) and Coinbase (NASDAQ:COIN). Angel investor Paul Barron, a partner at DNA, is speculating that Ripple might just have the edge in this developing bidding war.

Barron suggests that Ripple’s offer range of $9 to $11 billion might just be enough to win over Coinbase, especially if Circle is in the mood to sell. However, he adds a crucial detail — the rumour is that Coinbase is prepared to offer an astonishing $12 billion for Circle.

It seems like everyone is in the mood to bid high for Circle. But is Coinbase really capable of putting together an offer that could best Ripple’s bid of $9 to $11 billion? Barron speculates that Coinbase might be able to manage it, considering they have over $8 billion in cash.

Coinbase's Strong Financial Position

As of Q1 2025, the publicly traded crypto exchange had an outstanding cash position of over $8 billion. They also have the ability to raise additional capital through the public markets if needed, which grants them excellent liquidity for making large-scale acquisitions.

This would allow them to structure a deal with a mix of cash and stock, potentially giving them more flexibility than Ripple, which would be using a portion of its vast XRP holdings to fund the acquisition.

The two companies' close relationship adds another layer of complexity. Back in 2019, Coinbase and Circle teamed up to co-found the Centre Consortium, which was initially responsible for governing USDC.

If Coinbase decides to pursue a full acquisition of Circle, it would mark a major strategic expansion into the stablecoin sector, deepening their influence over one another.

Why Is Coinbase Interested In Acquiring Circle?

Earlier this year, rumors began swirling that Coinbase was planning a takeover bid for Circle. These rumors were quickly dispelled by an executive at Coinbase, who stated that they weren’t engaging in any acquisition activity at the moment.

However, more recent reports suggest that the narrative has shifted. According to reports from The Tokenizer and Blockworks, Coinbase is now preparing a counteroffer for Circle.

This move shouldn’t come as a surprise, given Coinbase’s significant financial capabilities and the valuable addition that Circle’s stablecoin technology could bring to their operations.

Coinbase is a well-known cryptocurrency exchange in the U.S., recognized for its strong presence in the market. As of the first quarter of 2025, the exchange had an impressive cash balance of $8.1 billion, a testament to their financial strength.

Moreover, Coinbase has the flexibility to access the capital markets whenever they need to expand their operations further. This strategic