Why Ripple’s Proposed Circle Acquisition Would Be A Stablecoin Superplay

Crypto researcher SMQKE has commented on a recent Bloomberg report that claims that Ripple has made a $4 billion to $5 billion offer to acquire Circle, the company behind the USDC stablecoin.In response, SMQKE characterized the potential acquisition as a “stablecoin superplay,” laying out a detailed rationale for why such a deal could be transformative for Ripple and the broader digital asset ecosystem.Circle’s Financial Burden Exposed Through IPO FilingAt the center of SMQKE’s argument is Circle’s recent IPO filing, which revealed previously undisclosed structural weaknesses. Despite Circle generating $1.68 billion in revenue in 2024, its net income was only $156 million.RIPPLE ACQUIRING CIRCLE WOULD BE A STABLECOIN SUPERPLAYCircle’s upcoming IPO filing just exposed a major weakness. Coinbase still takes 50% of USDC’s reserve revenue even after Circle paid $210M to cut them out of the consortium. That’s a massive profit leak, and Ripple has... https://t.co/1XaQQofeOR pic.twitter.com/k0kfR1GTZ4— SMQKE (@SMQKEDQG) April 30, 2025According to the documents provided by SMQKE, one of the primary reasons for this profitability gap is that Coinbase continues to receive 50% of USDC’s reserve revenue.This arrangement has remained in place even after Circle reportedly paid $210 million in stock to acquire Coinbase’s stake in Centre, the consortium that governs USDC. SMQKE described this as a “massive profit leak” that burdens Circle’s margins and operational flexibility.Ripple’s Lean Structure and Revenue StreamsSMQKE contrasts Circle’s financial constraints with Ripple’s multi-stream revenue model, which includes XRP sales to institutional investors, cross-border transaction fees, interest income from loans, and investment returns.Ripple’s business model appears to be more streamlined and financially efficient as it doesn’t have to share a large portion of its revenue with outside partners, unlike Circle, which still gives 50% of its USDC reserve income to Coinbase.According to SMQKE, the potential acquisition would allow Ripple to absorb Circle’s revenue base while using its own infrastructure to optimize operational efficiency. By renegotiating or eliminating the Coinbase revenue-sharing deal, Ripple could substantially enhance Circle’s profit margins.Additionally, integrating USDC into Ripple’s existing services — specifically RippleNet and Liquidity Hub — would bring regulatory-strengthened stablecoin functionality into Ripple’s payment and liquidity ecosystem.Synergies Between XRP and USDCThis merger would also give Ripple direct access to over $60 billion in circulating USDC, significantly boosting scale and presence across global markets. SMQKE emphasized the synergy between XRP and USDC: XRP’s speed and liquidity utility, combined with USDC’s regulatory acceptance, would create what was described as a “two-token juggernaut.”We are on twitter, follow us to connect with us :- @TimesTabloid1— TimesTabloid (@TimesTabloid1) July 15, 2023A Strategic Fit in a New Regulatory EraSMQKE noted that Ripple is in a strong position to carry out a deal like this, having already faced and overcome major legal challenges with the SEC.This track record gives the company added credibility at a time when regulatory compliance is becoming more important in the digital asset space. Meanwhile, Circle — despite its strong market position — appears weighed down by costly legacy partnerships and is facing renewed scrutiny as it prepares to go public.If the acquisition were to proceed, Circle would gain more than just capital. SMQKE argued that Circle would benefit from Ripple’s operational maturity, legal strength, and direct integration into decentralized finance. These advantages could offset Circle’s vulnerabilities and accelerate its evolution from a stablecoin issuer to a fully embedded component of a larger payments and liquidity ecosystem.Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.Follow us on X, Facebook, Telegram, and Google NewsThe post Why Ripple’s Proposed Circle Acquisition Would Be A Stablecoin Superplay appeared first on Times Tabloid.