Ripple is reportedly increasing its offer to purchase Circle from $5 billion to over $20 billion.

Reports have emerged indicating that Ripple is actively seeking to increase its offer for Circle, the renowned issuer of USDC, from $5 billion to a staggering sum of over $20 billion.

The integration of RLUSD, a compliant and enterprise-grade stablecoin embedded within Ripple’s global payment system, may have pre-empted this acquisition attempt, as hinted by crypto lawyer Bill Morgan.

The higher valuation is now pending and subject to active negotiation, according to knowledgeable sources who spoke to Bloomberg.

If confirmed, the deal would not only shift the balance of power in the global stablecoin market but also put an even heftier price tag on the acquisitive crypto firm.

The timing of the proposed deal is crucial as Circle is in the process of applying for an IPO in the U.S. and seeks to expand its user base.

Earlier this year, a report by Bloomberg indicated that Ripple had made an initial bid of $5 billion for Circle, which was subsequently rejected by the latter.

Nevertheless, Ripple is reportedly persisting in its pursuit of acquiring Circle, aiming to integrate USDC, the world’s second-largest stablecoin, into its ecosystem.

Crypto influencer Crypto Eri described the move as an aggressive market consolidation. “Ripple buying Circle is not for the financials,” she said, citing a larger ambition to buy out Circle’s infrastructure and limit smaller rivals.

After the deal gets finalized, Ripple will have the most control over two prominent stablecoins in RLUSD and USDC, as well as institutional clearing and global payment rails. This would position Ripple in the middle of the emerging digital finance ecosystem.