John Deaton Comments on Ripple’s Rumored Bid for Circle
Pro-XRP lawyer John E. Deaton discussed the potential acquisition of stablecoin issuer Circle by Ripple Labs. He expressed interest in Ripple potentially becoming a bank if the deal proceeds.
Ripple’s Proposal to Acquire Circle
- Ripple reportedly increased its bid for Circle from $4 billion to $5 billion, which Circle rejected as undervaluing the company.
- The acquisition attempt follows Circle's recent application for an Initial Public Offering (IPO) in the US.
- Ripple remains interested but has not confirmed plans for a new offer.
- Circle is focused on its IPO and has declined to comment on rumors.
- The possible acquisition is contingent upon resolving Ripple's legal issues with the SEC.
- Ripple's valuation was estimated at $11 billion in 2024, which some analysts deem outdated.
- Concerns exist regarding the adoption of the XRP Ledger (XRPL) without Ripple being publicly traded.
Ripple on an Acquisition Spree
- Ripple recently acquired prime brokerage firm Hidden Road for $1.25 billion, marking one of the largest crypto deals to date.
- Hidden Road processes over $3 trillion in transactions annually for more than 300 institutional clients.
- Ripple launched the RLUSD stablecoin, tied to the US dollar, on both the XRP Ledger and Ethereum blockchains, achieving a market capitalization surpassing $300 million.