Earlier this week, news broke about Ripple Labs’ bid for Circle, a move John Deaton believes could push the firm toward becoming a bank.
Pro-XRP Lawyer John E. Deaton has commented on the rumored Ripple Labs deal to acquire stablecoin issuer Circle. Deaton said he looks forward to Ripple buying or becoming a bank once the deal with Circle pulls through.
Ripple’s Proposal to Acquire Circle
In an X post, the XRP holders’ lawyer questioned how much Ripple could pay to acquire Circle. Deaton’s comments are in response to a post from TechCrunch Founder Michael Arrington about the Ripple and Circle deal. Arrington stated that Ripple increased its bid to buy Circle from $4 billion to $5 billion. However, Circle rejected the offer.
If Ripple & Circle combine, buying/becoming a bank is next. Inquiring minds want to know: How high will @bgarlinghouse go? https://t.co/hAnfPiPUTq
— John E Deaton (@JohnEDeaton1) April 30, 2025
According to the report, Circle said the bid was too low and therefore undervalues the company. The rumored acquisition attempt came less than 30 days after Circle applied for an Initial Public Offering (IPO) in the US.
The Bloomberg report further highlighted that Ripple is still interested in acquiring the USDC stablecoin issuer, but the company has yet to decide whether to make another offer. For Circle, the stablecoin issuer remains focused on its newly filed IPO, refusing to comment on “market rumors.”
Through the IPO launch, Circle aims to bring innovative blockchain-based financial services to a broader audience and capitalize on the growing interest in digital assets.
It remains unclear whether Ripple intends to pursue the Circle acquisition until it clarifies some of its legal entanglements with the US Securities and Exchange Commission (SEC). Following the dissolution of the Ripple vs SEC case, Ripple CEO Brad Garlinghouse also disclosed plans for a possible IPO launch this year.
In 2024, Ripple reportedly had a valuation of $11 billion, an estimate CEO Brad Garlinghouse called “outdated” as of January. Considering this valuation and its possible IPO launch, some analysts think Ripple cannot reach its goal of acquiring Circle soon.
Another speculation around Ripple Labs’ products is the mainstream adoption of the XRP Ledger (XRPL). However, many believe the World Bank cannot use the XRPL unless Ripple becomes a publicly traded company.
Ripple on an Acquisition Spree
Last month, Ripple decided to buy Hidden Road, a prime brokerage firm for $1.25 billion. This acquisition marks one of the largest crypto deals in history. Ripple said the move would help scale activity for XRP and XRP Ledger.
Commenting on the acquisition, John Deaton said it emphasizes Hidden Road’s position as a prime brokerage firm. Hidden Road processes over $3 trillion in transactions yearly for over 300 institutional clients.
Last year, Ripple also entered the growing stablecoin market with the launch of the Ripple USD (RLUSD) stablecoin. Since then, RLUSD has gained market traction, with its capitalization recently surpassing $300 million.
Ripple’s RLUSD stablecoin is tied to the US dollar and works on the XRP Ledger and Ethereum blockchains. It is designed to help solve problems in Peer-to-Peer (P2P) and cross-border payments.
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