Circle, the company behind the popular USDC stablecoin, has turned down a $5 billion acquisition offer from Ripple Labs, signaling its intent to pursue a more ambitious path. According to legal expert John E. Deaton, the rejection reflects Circle’s belief that it has a much greater opportunity ahead—namely, a public offering that could see the company valued at as much as $10 billion.

Circle officially filed its S-1 registration with the U.S. Securities and Exchange Commission on April 1, 2025. The company plans to go public this summer on the New York Stock Exchange under the ticker “CRCL.” The IPO is being backed by major financial institutions, including JPMorgan Chase and Citigroup, which are acting as lead underwriters. While initial reports suggested a valuation between $4 billion and $5 billion, market analysts like Deaton believe that improved market sentiment, stronger institutional backing, and evolving crypto regulations could lift the final valuation much closer to $10 billion. That figure would bring Circle’s value in line with its earlier 2022 SPAC deal, which failed to close but had placed the company near a $9 billion valuation.

One possible reason behind Ripple’s interest in acquiring Circle may be strategic rather than purely financial. Analysts believe Ripple aimed to take control of USDC, the second-largest stablecoin in the crypto market after Tether (USDT). Owning Circle would have allowed Ripple to dominate the stablecoin space and access Circle’s expanding payment infrastructure. This move could have helped Ripple eliminate competition while gaining a stronger foothold in the growing world of tokenized finance and cross-border transactions.

However, Circle’s decision to reject the deal suggests that it sees far greater potential in remaining independent. The company appears to be positioning itself as a long-term leader in the regulated crypto finance sector. A successful IPO would not only provide Circle with fresh capital but also enhance its credibility among regulators and traditional financial institutions.

A major reason for Circle’s rising confidence is the recent shift in U.S. regulatory sentiment toward digital assets. Under the current administration, lawmakers have shown growing support for clearer crypto regulations. One key example is the proposed STABLE GENIUS Act, which lays out a formal framework for U.S. dollar-backed stablecoins. The legislation introduces state-level oversight for issuers with under $10 billion in assets and federal regulation for larger players, ensuring stricter audit, reserve, and compliance standards.

With regulation finally beginning to match the pace of innovation, Circle finds itself in a favorable position. The combination of legal clarity, growing political support, and investor interest creates the perfect climate for a strong IPO introduction. Deaton points out that these conditions significantly increase the likelihood that Circle’s valuation could reach or exceed the $10 billion mark, particularly as traditional finance continues to explore digital asset integration.

Circle’s choice to walk away from Ripple’s $5 billion offer sends a clear message: the company is focused on growth, independence, and long-term value creation. With the IPO on the horizon and momentum building in both regulation and investment, Circle appears to be clearing the runway for one of the most anticipated public offerings in the crypto industry this year.