Ripple announced on Thursday that it will acquire the stablecoin payment platform Rails for $200 million, with the deal expected to close in the fourth quarter of 2025.
Ripple stated that this move aims to expand its enterprise-grade digital asset infrastructure and provide the most comprehensive stablecoin payment solutions in the market.
Ripple expects this acquisition will enable it to offer stablecoin exchange services without requiring customers to hold cryptocurrencies, while also supporting customers in managing various payment types. The company also plans to support platform integrations for payments through Ripple USD (RLUSD) and XRP.
Rail's CEO Bhanu Kohli stated that Rail is expected to handle over 10% of global stablecoin payments by 2025, with a market size estimated at $36 billion, according to Artemis Analytics.
This acquisition further promotes Ripple's long-term strategic expansion through mergers and acquisitions. In April this year, Ripple acquired the crypto-friendly brokerage Hidden Road for $1.25 billion.
Related: GENIUS announces new stablecoin rules but is unclear for foreign issuers
Ripple's entry into the stablecoin sector
This acquisition marks Ripple's latest foray into the growing stablecoin sector. The company plans to launch its RLUSD stablecoin aimed at institutional customers by the end of 2024.
In mid-October 2024, Ripple also announced partnerships with several cryptocurrency exchanges and platforms, including Uphold and Bitstamp, to facilitate the distribution of RLUSD.
Related: Europe faces risks of dollar dominance and needs common stablecoin rules: ECB advisor
Regulatory expansion into Europe and other regions
Ripple confirmed in mid-July plans to apply for crypto asset regulatory licenses in the European market, with a company spokesperson stating that it has identified significant opportunities in the European market.
This news follows Ripple's approval from the Dubai International Financial Centre Financial Regulatory Authority, connecting the Dubai Free Economic Zone with the Middle East, Africa, and South Asia.
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