Ripple Labs proposed to takeover Circle Internet Group Inc. for $4 billion to $5 billion. According to people familiar with the matter, Circle, the second largest stablecoin issuer, turned down the offer and termed it as too low.
Meanwhile, Ripple has not yet made another move but remains interested in acquiring Circle. Moreover, Circle’s USDC has penetrated global web3 markets to hit a market cap of about $61.6 billion and a 24 hour average trading volume of about $6.9 billion.
“We do not comment on market rumors. As we are currently in a quiet period with the U.S. SEC, we cannot comment further on our corporate financial plans. Our long-term goals remain the same,” Circle’s spokesperson told Bloomberg.
Earlier in April, Circle filed for an initial public offering (IPO) with the U.S. SEC, with the aim of listing on NYSE under ticker CRCL. While Circle’s revenue grew by 16 percent to $1.7 billion YoY, the company’s net income and EBITDA fell sharply.
The company has attributed the decline in net income to increased partner costs, service discontinuation, in addition to operational expenses. For instance, the company has reported an increase in distribution and transaction costs from higher fees on its partners led by Coinbase Global.
Ripple Labs recently launched RLUSD to help streamline its cross-border payments system, which includes backing up XRP adoption. However, the company has faced intense competition from existing stablecoins led by Tether USDT.
Additionally, RLUSD has experienced significant competition from similar products, such as USD1(USD1)by Donald Trump-backed World Liberty Financial that has already surpassed $2 billion in market cap.
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