Ripple Denies Circle Acquisition Rumors as RLUSD Gains Ground in Dubai

In a recent public statement, Ripple dismissed reports that it had attempted to acquire stablecoin issuer Circle, clarifying that no such deal was ever pursued. At the same time, Ripple’s RLUSD stablecoin has reached a significant regulatory milestone in the Middle East, gaining approval from the Dubai Financial Services Authority (DFSA) for use by more than 7,000 firms operating within the Dubai International Financial Centre (DIFC).

Ripple CEO Denies Acquisition Talks With Circle Amid Stablecoin Expansion and M&A Surge

Ripple has officially denied media reports suggesting it attempted to acquire stablecoin issuer Circle, with CEO Brad Garlinghouse refuting claims that the crypto payments firm ever pursued such a deal. The clarification came during a private onstage conversation at the Ripple Las Vegas conference, shared publicly by Georgetown Law professor Chris Brummer in a post to X on Tuesday.

“Brad was unequivocal—Ripple never pursued an acquisition of Circle. And while he wished the company well, it wasn’t something he was considering,” Brummer wrote, referencing their talk that took place two days prior but was not live-streamed or publicly released.

Garlinghouse’s statement directly contradicts a report by Bloomberg, which claimed Ripple had made a bid valued between $4 billion and $5 billion to bring Circle under its umbrella. The offer was reportedly rejected for being too low, and Bloomberg added that Coinbase—already a longstanding Circle partner—may have made a competing offer. However, a Circle spokesperson later said that the company is “not for sale,” further muddying the waters around the rumors.

Circle, the issuer of the USDC stablecoin, is currently preparing for a public listing on the New York Stock Exchange. The company aims to raise as much as $896 million through the sale of 32 million shares of Class A common stock, priced between $27 and $28. The IPO would place its valuation at approximately $7.2 billion, a significant climbdown from its previously planned 2022 SPAC merger at $9 billion that was ultimately canceled.

Ripple Eyes Hybrid Finance Over Stablecoin Dominance

Ripple, meanwhile, is carving out its own path in the stablecoin market. In April 2024, the company announced the launch of its own US dollar-pegged stablecoin, RLUSD. Backed by assets including US dollar deposits and short-term Treasuries, RLUSD received regulatory approval from the New York Department of Financial Services (NYDFS) in December and has since achieved a market cap of around $333 million. While this is still minuscule compared to USDC’s $61.46 billion valuation, it represents a meaningful step in Ripple’s effort to diversify beyond cross-border payments.

Top stablecoins by market cap (Source: CoinMarketCap)

According to Brummer, Garlinghouse emphasized Ripple's broader strategic vision: a future where crypto-native infrastructure and traditional finance converge. 

While Ripple may not have pursued Circle, the company has recently been on an acquisition spree. In April, Ripple made headlines by acquiring Hidden Road, a global credit network that clears more than $3 trillion annually and serves over 300 institutional clients. The $1.25 billion deal briefly held the title of the largest crypto-related M&A of the year until Coinbase's recent acquisition of Deribit.

A Decisive Moment for Stablecoins

The latest developments come at a critical juncture for the stablecoin market, which has become a focal point of institutional adoption and regulatory scrutiny. As Circle prepares for its IPO and Ripple expands its RLUSD footprint, the next phase of competition will likely shift from size and market share to regulatory compliance, integration into traditional finance, and real-world use cases.

With Garlinghouse’s denial, Ripple appears to be signaling confidence in its organic growth strategy, bolstered by licensing, acquisitions, and a nuanced approach to merging legacy and blockchain-based financial systems.

Whether RLUSD can eventually rival USDC remains uncertain, but Ripple’s focus on infrastructure and interoperability may prove to be a more sustainable long-term play than headline-grabbing acquisitions.

Ripple’s RLUSD Hits Major Milestone in Dubai as DFSA Approves Stablecoin for 7,000 Licensed Firms

Meanwhile, Ripple’s expansion into the Middle East just reached a new milestone. Monica Long, President of Ripple, announced on X that RLUSD has been officially approved as a recognized crypto token by the Dubai Financial Services Authority (DFSA). The development means that over 7,000 companies currently licensed under Dubai’s regulatory framework within the Dubai International Financial Centre (DIFC) are now eligible to use RLUSD across their operations.

The DFSA’s approval cements RLUSD’s legitimacy in one of the most tightly regulated financial centers in the world. The DIFC, which is home to thousands of fintech startups, venture capital firms, and banking entities, operates under an independent regulatory framework that aligns with international standards.

Ripple’s RLUSD has already been greenlit by the New York Department of Financial Services (NYDFS), making it one of the few stablecoins to hold both US and UAE regulatory credentials. Built on a 1:1 reserve model backed by US dollars, cash, and high-liquidity assets, RLUSD offers a level of transparency and stability designed to satisfy the stringent requirements of global regulators and institutional users.

“This positions RLUSD as not just a compliant stablecoin,” Monica Long noted in the tweet’s accompanying press release, “but as a high-utility asset that meets the standards of two of the world’s most rigorous financial markets.”

One of the original goals behind the launch of RLUSD was to complement Ripple’s existing XRP-based payment infrastructure by offering a fiat-pegged digital asset that could seamlessly integrate into real-world financial systems. With the DFSA’s approval, RLUSD is now eligible for use within Ripple Payments throughout the DIFC, potentially accelerating cross-border settlements and reducing costs for Ripple’s partners in the region.

The Middle East has proven to be fertile ground for blockchain solutions, especially those that address pain points in traditional finance. According to Ripple, stablecoin transactions in the UAE surged 55% year-over-year in 2024, reflecting skyrocketing demand for fast, low-fee, and transparent payment mechanisms.

Monica Long emphasized the strategic importance of the region: “Dubai’s $400+ billion international trade economy makes it one of the most promising markets for RLUSD to scale. With this regulatory green light, we can now help local firms leverage stablecoins for everything from payroll to global settlement.”

7,000 DFSA-Licensed Firms Now Eligible

The approval means that not only can Ripple use RLUSD across its own enterprise systems, but any of the roughly 7,000 companies licensed under DFSA regulations can also integrate the stablecoin into their payment, treasury, or crypto offerings. These firms span sectors including banking, wealth management, venture capital, insurance, and remittances—making this development a massive boost for stablecoin utility.

Whether used for payroll disbursements, international trade settlements, or DeFi integrations, RLUSD is now legally usable by institutions that had previously been unable to access stablecoins due to compliance restrictions.

Ripple’s broader strategy centers on creating a hybrid financial future, where tokenized assets, fiat onramps, and blockchain infrastructure work seamlessly together. RLUSD, while still in its early stages with a market cap of just over $330 million, is a key pillar in that vision.

What’s Next for RLUSD in the UAE?

With regulatory clarity secured in both the US and UAE, Ripple is expected to ramp up RLUSD integrations across its regional partners. DIFC-based payment processors, financial service firms, and fintech platforms are already reportedly in early-stage talks with Ripple about how to embed the stablecoin into their operations.

In addition, Ripple is likely to use this regulatory momentum to seek further approvals in other financial centers, particularly in Europe and Asia, as the global stablecoin race heats up.