Circle Partners with Binance and Coinbase to Promote High-Yield USDC, Ripple’s $5 Billion Acquisition Attempt Rejected
Ripple Proposed $4 Billion to $5 Billion Acquisition of Circle Rejected
According to Bloomberg, citing informed sources, Ripple has proposed to acquire stablecoin issuer Circle for $4 billion to $5 billion, but the offer was rejected due to being too low. The stablecoin USDC, issued by Circle, has surged from $33 billion a year ago to $61.5 billion. Circle signed a promotion agreement with Binance at the end of last year to launch a two-year marketing campaign. Its long-term partner Coinbase also launched the USDC Boosted Rewards program in February, where users holding USDC in perpetual contract portfolios can earn up to 12% APY. It is speculated that Circle aims to boost the issuance of USDC to ensure a successful listing.
Ripple’s $5 Billion Acquisition Offer for Circle Rejected
Informed sources stated that Ripple proposed to acquire stablecoin issuer Circle for $4 billion to $5 billion, but the offer was rejected due to being too low. Although Ripple remains interested in Circle, it has not yet decided whether to make another offer. Due to the details remaining confidential, the sources requested anonymity. They added that Circle is focused on completing its initial public offering (IPO) submitted earlier this month.
A spokesperson for Circle stated in an email: “We do not comment on market rumors. As we are currently in a quiet period with the U.S. Securities and Exchange Commission (SEC), we cannot comment further on our financial plans. Our long-term goals remain unchanged.”
According to data provider PitchBook, Circle’s valuation reached $7.7 billion after a funding round in 2022, and it has now climbed to $9 billion.
Circle Boosts USDC with High Promotions with Binance and Coinbase
The stablecoin USDC issued by Circle has risen from $33 billion a year ago to $61.5 billion, benefiting not only from the recovery of the crypto market but also from various marketing initiatives undertaken with Binance and Coinbase.
Circle signed a promotion agreement with Binance at the end of last year, launching a two-year marketing campaign to promote USDC on the Binance platform, where Binance will retain a certain amount of USDC in its treasury. Circle paid a one-time fee of $60.25 million to Binance and agreed to pay Binance a monthly incentive fee, which represents a certain percentage of the USDC held on its platform and in the treasury.
The USDC interest rate on Binance currently reaches up to 10%, but is capped at 400 USDC.
Additionally, Circle’s long-term partner Coinbase launched the USDC Boosted Rewards program in February, allowing users holding USDC in perpetual contract portfolios to earn up to 12% APY, with a cap of $1 million.
Despite Circle achieving $1.676 billion in revenue in 2024, a year-on-year increase of 16% according to IPO documents, net profit dropped to $155 million, mainly due to high promotional expenses. However, it is speculated that Circle aims to boost the issuance of USDC to ensure a successful listing. Thus, Ripple’s acquisition is unlikely to be considered. After all, Circle executives stand to receive a cash bonus of $1 million upon a successful IPO listing, so they must work hard.
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