[NEW YORK] Ripple Labs Has Proposed a Takeover of Rival Stablecoin Provider Circle Internet Group

Ripple has bid to take over stablecoin provider Circle Internet Group for about US$4 billion to US$5 billion but the offer was rejected as too low, sources familiar with the matter said.

While Ripple remains interested in Circle, it has not yet decided whether to make another bid, said the sources, who asked to remain unidentified as the matter is not yet public.

For its part, Circle is now focused on following through on an initial public offering (IPO) that it filed for earlier this month, the sources added.

“We do not comment on market rumors,” a spokesperson for Circle said. “As we are currently in a quiet period with the SEC, we cannot comment further on our corporate financial plans. Our long-term goals remain the same.”

A representative for Ripple declined to comment.

The bid comes as crypto dealmaking accelerates following a run-up in digital-token values, which has spurred several players to ramp up their IPO plans.

Circle, BitGo, Gemini and Bullish Global have all been considering going public as soon as this year, Bloomberg News has reported.

Ripple agreed to buy prime brokerage Hidden Road for $1.25 billion.

Crypto asset manager Bitwise also filed for an XRP ETP with the Swiss securities regulator.output: Recently, Ripple Technologies made a bid to acquire Circle Internet Group, a move that would bring together two major players in the rapidly expanding stablecoin sector. However, sources familiar with the matter have disclosed that the bid was rejected by Circle's board of directors.

According to the sources, who spoke on the condition of anonymity as the details are not yet public, Ripple's bid valued Circle at about $4 billion to $5 billion. The offer was deemed too low by Circle's board, who are now focused on following through on an IPO that the firm filed for earlier this month.

"We do not comment on market rumors," a spokesperson for Circle said in response to a query regarding the bid.

"As we are currently in a quiet period with the SEC, we cannot comment further on our corporate financial plans. Our long-term goals remain the same."

A representative for Ripple declined to comment.

The bid comes as crypto dealmaking accelerates following a run-up in digital-token values, which has spurred several players to ramp up their IPO plans.

Circle, BitGo, Gemini and Bullish Global have all been considering going public as soon as this year, Bloomberg News has reported.

Earlier this year, HRT agreed to be acquired by Intercontinental Exchange in a deal that values the prime brokerage at about $1.25 billion.