Circle Seeks $10 Billion Valuation Through Upcoming IPO After Rejection of Ripple’s Acquisition Offer

Circle is gearing up for a massive initial public offering (IPO) with a targeted valuation of $10 billion, following the rejection of a proposed acquisition offer from Ripple worth $5 billion. The news comes as a surprise to many in the cryptocurrency community, as it suggests that Circle is confident in its long-term value and wants to go public on its own terms.

According to reports, legal expert John E. Deaton has revealed that Ripple’s bid was rejected by Circle due to their ambitious plans for an IPO. Deaton believes that Circle sees a much larger opportunity ahead, driven by favorable regulatory shifts and rising institutional interest in the cryptocurrency space.

Circle has already filed its S-1 with the U.S. Securities and Exchange Commission (SEC) on April 1, indicating its intention to list on the New York Stock Exchange under the ticker symbol “CRCL.” With JPMorgan Chase and Citigroup serving as lead underwriters, the IPO is expected to launch this summer.

Interestingly, Ripple’s proposal was likely motivated by a desire to reduce competition in the stablecoin space. By acquiring Circle and gaining control over its USDC stablecoin, which ranks second only to Tether (USDT) in terms of market capitalization, Ripple would have significantly reduced the number of major players in the industry.

However, it appears that Circle is not interested in being acquired, instead choosing to focus on its upcoming IPO. This suggests that the company is seeking a higher valuation through an IPO rather than accepting a lower offer from Ripple.

It’s also worth noting that recent regulatory developments in the United States have been highly favorable towards cryptocurrencies and blockchain technology. The introduction of the STABLE GENIUS Act, which provides a clear framework for U.S.-dollar backed stablecoins, could greatly benefit Circle’s future prospects.

The bill offers state-level oversight for issuers with under $10 billion in assets and federal regulation for larger players, with strict audit and compliance standards. This clarity, combined with political momentum and investor confidence, makes a $10 billion IPO valuation for Circle entirely possible.

Overall, the rejection of Ripple’s offer suggests that Circle is signaling its long-term vision and does not need a buyer to achieve its goals.

Source: https://coinpedia.org/news/circle-ipo-aims-for-10b-valuation-after-rejecting-ripples-5b-offer/