Ripple Acquires Rail for $200 Million to Enhance Stablecoin Services

NEW YORK, NY — Ripple announced on August 7 that it will acquire stablecoin payments platform Rail for $200 million. The deal is expected to close in the fourth quarter of this year, pending regulatory approvals.

Ripple, well-known for its association with the token XRP and its own stablecoin RLUSD, is expanding its stablecoin infrastructure as interest in digital assets grows. The acquisition aims to enhance Ripple’s capabilities by integrating Rail’s virtual accounts and automated processes into its existing payment framework.

Monica Long, president of Ripple, emphasized the importance of this acquisition, stating, “As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail solidifies our market leadership in stablecoin payments.”

Rail, based in Toronto and backed by Galaxy Ventures and Accomplice, specializes in using stablecoins for cross-border payments. The company reports that it is responsible for 10% of global stablecoin payment activity, which is estimated to reach $36 billion by 2025.

With this acquisition, Ripple aims to streamline payment processes, allowing customers to manage various payment types without necessarily holding cryptocurrency. This capability could facilitate businesses in managing their internal treasury flows more efficiently.

Rail’s CEO Bhanu Kohli noted that the partnership aligns with both companies’ vision for innovation in international money movement, stating, “Over the last four years, Rail built the fastest way to settle business payments internationally using stablecoins. Ripple shares our vision, and together, we’re excited to bring our innovation to businesses that move money internationally.”

Ripple’s investment in Rail follows its earlier announcement in April to acquire multi-asset prime broker Hidden Road for $1.25 billion, marking an aggressive strategy to lead in the rapidly advancing landscape of stablecoins.

As stablecoins gain traction in the financial landscape, this acquisition positions Ripple to take advantage of growing market opportunities. The company aims to navigate the evolving regulatory environment for cryptocurrencies as lawmakers work on frameworks for stablecoin use in the U.S.