Ripple Acquires Rail for $200 Million to Expand Stablecoin Payments Infrastructure

Ripple has announced plans to acquire Rail, a stablecoin-powered payments platform, for $200 million, with the transaction expected to finalize in the fourth quarter of 2025. The strategic acquisition is intended to bolster Ripple’s enterprise-grade digital asset infrastructure and position it as a provider of the most comprehensive stablecoin payments solutions in the market [1].

According to Ripple, the acquisition will allow it to offer stablecoin on- and off-ramps without the need for customers to hold cryptocurrency. The company also anticipates enabling clients to manage various payment types, including those related to internal treasury operations, using a single API integration. The platform will support multiple digital assets, such as Ripple USD (RLUSD) and XRP, and will offer enterprise-grade compliance, streamlined third-party payments, virtual accounts, and access to a multi-bank partner network [1].

Rail CEO Bhanu Kohli highlighted that Rail is projected to process more than 10% of global stablecoin payments in 2025, according to Artemis Analytics. The stablecoin market is estimated to reach $36 billion globally, underscoring the growing demand for such payment solutions [1].

This acquisition aligns with Ripple’s broader strategy of expansion through mergers and acquisitions. The company has invested approximately $3 billion in such initiatives to date, including the $1.25 billion acquisition of crypto-friendly prime broker Hidden Road in April [1]. The Rail deal further signals Ripple’s continued interest in the stablecoin sector, a market it has been actively entering since the launch of its RLUSD stablecoin in late 2024.

Ripple’s RLUSD has been designed with an institutional focus, differentiating it from many of its retail-oriented competitors. However, recent data indicates that retail adoption of RLUSD is on the rise. Late July reports showed increasing use of the stablecoin in self-custodial wallets like Xaman and integrations with developer platforms like Transak. In mid-October 2024, Ripple also announced partnerships with several cryptocurrency exchanges and platforms—including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA, and Bullish—to enhance the distribution of RLUSD [1].

In mid-July, Ripple confirmed its intent to pursue a Markets in Crypto-Assets Regulation (MiCA) license to expand into the European Union. A company spokesperson stated that Ripple aims to “become MiCA-compliant” and recognizes a “significant opportunity” in the European market [1].

Additionally, Ripple’s RLUSD has already received regulatory approval from the Dubai Financial Services Authority (DFSA), the regulatory body overseeing the Dubai International Financial Centre (DIFC). The DIFC, a major financial hub with nearly 7,000 registered businesses by the end of 2024, is strategically positioned in the Middle East and has strong economic ties with Africa and South Asia [1].

By acquiring Rail, Ripple is reinforcing its position in the global payments and stablecoin infrastructure space, while simultaneously navigating the evolving regulatory landscape in key markets such as Europe and the Middle East.

Source: [1] Ripple to buy stablecoin platform Rail for $200 million (https://cointelegraph.com/news/ripple-to-buy-stablecoin-platform-rail-for-200-million?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)