💵 Ripple Strikes $200M Deal to Acquire Rail — Boosting Stablecoin Payment Ambitions

For $200 million, Ripple will purchase Toronto-based payment infrastructure provider Rail to expand its stablecoin presence.

The deal should conclude in the fourth quarter of 2025, pending regulatory clearance. Galaxy Ventures and Accomplice support Rail, which uses tokenized currencies for cross-border payments.

Ripple plans to expand RLUSD at a time when stablecoin regulations are becoming clearer in the US and abroad.

Ripple's purchase looks to be intentionally timed to comply with the GENIUS Act and SEC stablecoin accounting advice.

RLUSD President Monica Long said the arrangement would expand the company's reach as institutions use stablecoin payment solutions.

Rail estimates it will handle 10% of the $36 billion worldwide B2B stablecoin payment flow. Rail wants to cut cross-border settlement delays from days to hours by using tokenized US currencies.

Ripple wants to leverage Rail's infrastructure for regulated payment processing in the US, Canada, and developing countries.

The purchase provides Ripple a customer-facing payments platform as fintech and corporate enterprises explore compliant digital dollar alternatives.

The business expects this to boost RLUSD's attractiveness among institutions seeking transparent and efficient payment rails. Ripple previously acquired Hidden Road, a multi-asset prime broker focusing on liquidity and custody services, for $1.25 billion in April.

Ripple applied for a US banking license in July and partnered with Bank of New York Mellon for custody services as part of its stablecoin plan.

RLUSD, created in December 2024, has over $500 million in circulation. Despite this increase, Tether's USDT and Circle's USDC dominate the stablecoin market.

Ripple's latest acquisitions imply a desire to make RLUSD a viable contender by combining infrastructure and compliance.

The legislation provides consumer safeguards, AML regulations, and financial stability rules for firms like Ripple to grow.
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