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Billionaire investor Chamath Palihapitiya has labeled the potential acquisition of Circle, the issuer of the USDC stablecoin, as a “steal deal” for major crypto players like Ripple and Coinbase.
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Circle’s recent IPO pricing and its robust infrastructure position the company favorably amid evolving US stablecoin regulations, making it an attractive target for strategic acquisitions.
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According to Chamath, even a $12–13 billion purchase price would be a bargain considering Circle’s long-term growth potential and market dominance.
Chamath Palihapitiya calls Circle acquisition a “steal deal” amid IPO success and regulatory shifts, highlighting USDC’s market strength and Ripple’s strategic interest.
Chamath Palihapitiya Highlights Strategic Value of Circle Acquisition
Chamath Palihapitiya, a prominent figure in the investment community, recently emphasized the strategic value of acquiring Circle, the company behind the USDC stablecoin. With Circle’s IPO pricing shares at $31 and a fully diluted valuation of approximately $8.1 billion, Chamath suggests that even a $12–13 billion acquisition would represent a significant bargain. He points to Circle’s advanced infrastructure and its advantageous positioning ahead of the anticipated US stablecoin legislation, known as the GENIUS Act, as key factors that enhance its long-term value. This perspective underscores the growing importance of stablecoins in the broader financial ecosystem and the competitive edge Circle holds in this space.
USDC’s Market Position and Ripple’s Acquisition Rumors
USDC currently commands a 30% market share among stablecoins, with a market capitalization exceeding $60 billion. In May 2025 alone, USDC transactions surpassed $2.3 trillion, reflecting its widespread adoption and liquidity. Despite circulating rumors, Ripple CEO Brad Garlinghouse has publicly denied any acquisition talks with Circle, clarifying that Ripple has not engaged in negotiations to purchase the stablecoin issuer. This denial adds a layer of complexity to market speculation, though Chamath’s comments suggest that such a deal could be strategically beneficial for Ripple or Coinbase, both of which are actively expanding their stablecoin offerings.
Regulatory Environment and Market Dynamics Impacting Circle’s Future
The regulatory landscape in the United States is rapidly evolving, with the GENIUS Act poised to establish clearer guidelines for stablecoin issuers. Circle’s proactive positioning in this environment enhances its appeal to investors and potential acquirers. Industry experts, including crypto podcaster Scott Melker, have noted that Circle’s future success heavily depends on regulatory approval, especially in comparison to competitors like Tether. Melker remarked, “If Circle gets the green light, they’ll be tough to beat,” highlighting the competitive advantage regulatory compliance could confer.
Challenges from Wall Street and Industry Growth Metrics
While Circle has experienced impressive growth, with annual revenues increasing by 118% between 2022 and 2024 driven by decentralized finance (DeFi) and payment applications, challenges remain. Former BitMEX CEO Arthur Hayes has cautioned that the entry of Wall Street banks into the stablecoin market could disrupt Circle’s dominance. Nevertheless, USDC’s supply has surged from $3 billion in 2020 to over $60 billion today, with Ethereum remaining the primary blockchain for USDC issuance. Additionally, activity on Coinbase’s Base Layer 2 network is rising, indicating expanding infrastructure support for USDC transactions.
Conclusion
Chamath Palihapitiya’s endorsement of Circle as a “steal deal” acquisition highlights the stablecoin issuer’s robust market position and strategic value amid regulatory developments. While Ripple denies acquisition talks, the evolving landscape suggests that Circle remains a pivotal player in the stablecoin sector. Investors and industry participants should closely monitor regulatory outcomes and market responses, as these factors will shape the competitive dynamics and long-term valuation of USDC and its issuer.
