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- An XRP enthusiast weighs in on Ripple’s offer to acquire stablecoin issuer Circle, highlighting the possible impact on XRP and the ecosystem at large.
- According to the enthusiast, Ripple’s plan is clear – dominate the payment industry, own stablecoin rails, and make XRP a default bridge.
Multiple reports have confirmed that Ripple Labs seeks to acquire stablecoin issuer Circle. As detailed in our recent blog post, its latest bid of $4 to $5 billion was rejected as Circle considers this too low. Commenting on this, an XRP enthusiast identified as “All Things XRP” has created a thread, explaining its possible impact on the overall ecosystem.
Firstly, “All Things XRP” pointed out that the combination of RippleNet and USDC could see the blockchain company dominating the payment industry. According to him, RippleNet already uses XRP to power fast and global transactions. Adding the USDC’s liquidity of $61 billion could attract several banks to come on board.
In its subsequent post, All Things XRP also highlighted that this acquisition could position Ripple as a major stablecoin company, controlling the use of both RLUSD and USDC “under one umbrella.” While this reduces fragmentation, it also boosts the power of Ripple while making “XRP the connective tissue”.
More to Expect From the Ripple-Circle Deal
Another thing to expect from this move is a significant level of Institutional adoption. According to All Things XRP, Circle currently has enviable banking partnerships and regulatory trusts. Acquiring this company could direct all the attention of Wall Street to XRP. Meanwhile, USDC is also reported to fuel everything from liquidity to global payroll. The XRP enthusiast believes that this move would boost the speed of XRP and reduce its cost. Above all, he believes that the Circle’s acquisition is strategic.
It can be recalled that Ripple recently acquired prime brokerage firm Hidden Road for $1.2 billion, becoming one of the largest acquisitions in crypto history. As explored by CNF, the brokerage firm would come along with 300 institutional clients with XRP Ledger (XRPL) acting as post-trade for “all Hidden Road’s prime brokerage services”. According to All Things XRP, a successful acquisition of Circle could make this a “consolidation” while positioning XRP as “the engine.”
Once the deal goes through, XRP would transcend a bridge asset to become an infrastructure. Specifically, the asset could become a cross-border, cross-asset, and cross-industry asset, entering a new era.
Additionally, the post hints that Ripple could stand a good chance if it raises the offer. In all, Ripple’s blueprint is reported to have been exposed – dominate payment, own stablecoin rails, and make XRP the default bridge. This implies that Circle was in step two, with more moves expected in the future.
This Isn’t Just a Business Deal. It’s a blueprint for a new financial layer—powered by XRP. Ripple’s strategy is bold. If it works, XRP isn’t just part of the system. It is the system.
Following this report, the price of XRP declined by 1.79% on its daily price chart and 6.7% on its weekly chart, trading at $2.1. According to our recent analysis, XRP could record an explosive surge to $15 this year.