Circle Goes Public With A Valuation of 10 Billion USD, Rejects Ripple

TinTucBitcoinOfficial · 2025-05-03T07:51:13+00:00

Circle rejects Ripple's $5 billion buyout offer, focusing on upcoming IPO worth nearly $10 billion. Legal expert John E. Deaton explains the decision, highlighting positive regulations and financial institutions' growing interest in crypto. Ripple's interest in Circle may be to reduce competition, control USDC, and utilize Circle's payment network. With favorable US regulations and clear legal frameworks, Deaton predicts a $10 billion IPO value for Circle. Rejecting Ripple's offer demonstrates Circle's confidence in its long-term value and desire for a public listing on its own terms. IPO preparations and favorable legal conditions pave the way for Circle's bright future.

TinTucBitcoinOfficial

2025-05-03 07:51:13

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Circle has rejected a $5 billion acquisition offer from Ripple, focusing on the potential for an IPO in the future. According to legal expert John E. Deaton, Circle sees a greater opportunity with the upcoming IPO, which is estimated to reach nearly $10 billion due to positive regulatory changes and increasing interest from financial institutions in cryptocurrency. Circle filed its S-1 with the SEC on April 1, 2025, and plans to list on the New York Stock Exchange under the ticker “CRCL”, with support from JPMorgan Chase and Citigroup.

Circle is targeting a valuation of between 4 billion and 5 billion USD for its IPO, but Deaton believes that market conditions and improved regulations could enhance this value, potentially reaching 9 billion USD as a failure in the 2022 SPAC efforts. One reason Ripple wants to acquire Circle could be to reduce competition, control USDC, and leverage Circle’s payment network.

At the same time, regulations in the United States are trending in favor of cryptocurrencies. Under the new regulation, the legal corridor for cryptocurrencies is becoming clearer, especially with the STABLE GENIUS Act. This makes it easier for stablecoin issuers with assets of less than $10 billion, while large enterprises will be subject to federal regulation and strict auditing standards. Deaton said that regulatory clarity along with political sentiment and investor confidence created momentum for Circle towards a $10 billion IPO value.

Circle’s refusal of Ripple’s proposal shows confidence in its long-term value and a desire to list publicly in its own way. Although Ripple may have considered this strategy, Circle insists it does not need buyers but rather a clear direction. With the IPO being prepared and the regulatory framework being favorable, Circle’s future looks brighter than ever.

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