The XRP + USDC Superstack: Could Ripple Become the New King of Stablecoins?

There is information floating around in the crypto community that Ripple offered to buy rival stablecoin Circle. This could be huge for many reasons, let's understand why.

There are rumors floating around in the crypto community that Ripple offered to buy rival stablecoin Circle. This could be huge for many reasons, let’s understand why.

Analyst 'SMQKE' gave probably the best explanation on X how important this is for Ripple and XRP.

The Power of Combining XRP and USDC

The potential acquisition of Circle by Ripple would combine the strengths of XRP, a liquidity asset known for speed, with USDC, a regulated stablecoin that provides stability and familiarity. This would give Ripple control over both value movement through its payment rails and value storage through stablecoin reserves.

Circle has shown impressive revenue numbers with $1.68 billion in 2024 and they're reporting a net income of $156 million. However, a key issue is that Coinbase still takes 50% of USDC reserve revenue, even after Circle paid $210 million to exit their partnership consortium with Coinbase, rendering them financially constrained despite the popularity of their stablecoin.

On the other hand, we know that Block (formerly Square) is profitable and has multiple revenue streams from selling XRP, processing payments, and interest income on its balance sheet. Unlike Circle, they don’t have major revenue-sharing obligations and are emerging legally hardened after surviving the lengthy battle with the SEC. They also have interest income and are deploying their capital.

The strategic benefits are evident. For Block, acquiring Circle would bring immediate scale with USDC’s $60+ billion in circulation and the potential to restructure or eliminate the costly Coinbase revenue split that currently burdens Circle.

Rolling out USDC on RippleNet and Liquidity Hub would be a no-brainer, and the tokens would work nicely together - XRP moves money across borders quickly, while USDC provides stability and can be used where local regulations prefer stablecoins.

For Circle, they would gain Block’s legal firepower and efficient business operations, finally breaking free from relying so heavily on Coinbase. They would also get access to Block’s DeFi tools and business connections, which could help them make more money.

People who hold XRP might see more uses for their tokens as the two companies' products and services begin to integrate. The combined company would control both how money moves (through their payment network) and how value is stored (through the stablecoin), making for a more complete solution for digital payments.

This merger would certainly face hurdles, especially in the US where both companies have faced legal challenges recently.

There are also interesting tidbits about this merger. Apparently, Block offered $5 billion to buy Circle but they refused and said they want $7 billion instead. It seems like they're not interested in selling at all. They've previously talked about going public to raise capital.

Plus, there might be monopoly concerns if one company controls both a major payment system and a popular stablecoin. And the XRP and USDC communities might not agree on future plans.

This merger is a hot topic in the crypto world and it will be interesting to see if it really happens and what impact it will have on the industry.

Read also: Crypto Influencer Posts Viral XRP Price Prediction

RLUSD and the Circle Strategy

We know that Block already has its own stablecoin called RLUSD that's gaining users. So why would they want to buy Circle and their stablecoin? It's probably not just about entering the stablecoin market.

By buying Circle, Block would remove one of its biggest competitors and become a leading force in the stablecoin world. This would help them become stronger and more independent.

Taking over USDC would also give Block a huge and ready-made user base. Lots of people already use USDC and it works with many crypto platforms and services.

Block could quickly connect USDC with their existing products and services like RippleNet and Liquidity Hub. This would create a more complete financial system that could do more things for more people.

We've heard that Block offered $5 billion to buy Circle but Circle said no and wants $7 billion. But Block isn't giving up yet and might make another offer later.

Whether this deal happens or not, it shows how Block and USDC could work well together in the future of finance. XRP could handle the movement of money quickly and efficiently while USDC provides stability and familiarity. Together, they could offer a powerful solution for people and businesses who want to use digital currency for everyday use cases.

Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.Read our recent crypto market updates, news, and technical analysis here.

We recommend eToro