Ripple’s $11B Move to Buy Circle Could Disrupt Coinbase’s Crypto Stronghold

Cardano founder Charles Hoskinson has offered firm backing for Ripple’s rumored acquisition of Circle, suggesting the deal could disrupt the dominance held by Coinbase and its close partners. Speaking during a Sunday AMA session on YouTube, he downplayed antitrust concerns and argued that the acquisition would bring positive changes to the crypto industry.

In Hoskinson’s view, Coinbase, venture firm a16z, and Circle have teamed up to create an exclusive ecosystem. He said getting access to stablecoin communities and services is not easy for projects outside that Circle. As a result, the industry now serves its existing members at the expense of those aiming to join it.

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Ripple and Coinbase Compete to Control Circle’s Stablecoin Market

Hoskinson believes Ripple’s acquiring Circle could break this tight structure and reduce centralization. He added that Ripple’s involvement would create a more open environment that favors competition and fairness. In his view, this would challenge the current crypto stronghold maintained by the Coinbase-linked network.

Earlier, Bloomberg published that Circle rejected Ripple’s $5 billion offer because it was considered too low for the company. Ripple’s founder claimed there are whispers that Ripple might increase its bid to $11 billion soon—such a high amount guarantees Ripple’s full support of Circle’s stablecoin efforts.

After filing this month, the Circle has stuck to its decision to launch an IPO. Even so, Ripple and Coinbase are on many people’s lists as the ones most likely to purchase SoFi. Coinbase seems to have an advantage because of its connection with Circle, but Ripple is starting to close in.

He said Ripple is better suited to manage stablecoins than the existing players in this position. The expansion might lead to more liquidity and listings for several projects in the cryptocurrency world.

Conclusion

Ripple’s push to acquire Circle at a rumored $11 billion could seriously challenge Coinbase’s influence. As discussions continue, the deal can redefine power dynamics within the crypto industry.

Also Read: Ripple’s RLUSD Is Replacing Bank Stablecoins Ideas Faster Than Anyone Expected

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