Ripple Acquires Rail for $200M, Boosts Stablecoin Infrastructure
Ripple Expands Stablecoin Footprint with Rail Acquisition
Ripple, the blockchain company behind the XRP Ledger (XRPL), plans to acquire stablecoin payments platform Rail for $200 million. The deal, announced Thursday, is expected to close in Q4 2025, pending regulatory approvals.
This acquisition signals Ripple's commitment to strengthening its position in the stablecoin market and expanding the utility of its USD-pegged stablecoin, RLUSD.
Key Takeaways
- Ripple is acquiring Rail for $200M to enhance its stablecoin payments capabilities.
- The acquisition will improve RLUSD's functionality and strengthen Ripple’s presence in the stablecoin market.
Strategic Move in a Changing Landscape
The announcement follows recent federal stablecoin legislation, potentially providing a clearer regulatory environment for companies like Ripple to expand their digital asset operations.
Ripple has been actively expanding its stablecoin infrastructure. In April, the company revealed plans to acquire multi-asset prime broker Hidden Road for $1.3 billion, seeking to enhance RLUSD’s utility.
Additionally, Ripple has applied for a national banking license from the US Office of the Comptroller of the Currency (OCC). This license would enable the firm to have RLUSD regulated by the OCC and potentially offer additional crypto services. Ripple’s Standard Custody & Trust Company is also pursuing a Fed Master account to directly manage RLUSD reserves.
Rail's Role in Global Payments
Toronto-based Rail, supported by Galaxy Ventures and Accomplice, manages roughly 10% of global stablecoin payment activity. Their platform facilitates cross-border transactions by converting fiat to stablecoins and back using a single API. Designed for compliance, Rail supports business payments and payroll applications without mandating end-user wallets.
Acquiring Rail provides Ripple with an established infrastructure to increase RLUSD adoption in global payments, specifically in business-to-business (B2B) contexts.
Monica Long, president of Ripple, stated, “Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments. Ripple has one of the most widely used digital asset payment networks in the world, and this acquisition underscores our commitment to helping our global customer base to move money wherever and whenever they need.”