Ripple Acquires Rail for $200 Million to Strengthen Stablecoin Ecosystem

Ripple has announced its intention to acquire Canadian fintech startup Rail for $200 million, marking a strategic move to bolster its presence in the stablecoin market and enhance cross-border payment capabilities. The deal, expected to close in the fourth quarter subject to regulatory approval, will integrate Rail’s infrastructure into Ripple’s growing stablecoin ecosystem, particularly around its RLUSD stablecoin. Rail specializes in tokenized dollar transfers and is anticipated to handle about 10% of the $36 billion global B2B stablecoin payment volume in 2024, a significant figure in the rapidly expanding sector [1].

The timing of the acquisition aligns with the recent passage of the U.S. GENIUS Act, the first federal legislation to establish a regulatory framework for dollar-backed digital tokens. This legislative development has spurred increased activity among crypto firms seeking to align with the new compliance standards. Ripple, positioning itself at the forefront of this regulatory shift, has been actively expanding its services to meet the needs of enterprise clients and financial institutions. Monica Long, Ripple’s President, emphasized that the acquisition of Rail is a strategic step in Ripple’s broader mission to bring RLUSD to more enterprise customers as stablecoin regulations evolve [1].

Rail, based in Toronto and backed by Galaxy Ventures and Accomplice, brings a platform that significantly reduces cross-border settlement times—from days to hours—offering a compelling value proposition for both fintech and traditional financial players. The acquisition also strengthens Ripple’s regulated presence in North America and emerging markets, where demand for faster, compliant settlement solutions is rising [1].

This move follows Ripple’s acquisition of prime brokerage firm Hidden Road in April for $1.25 billion, a transaction that expanded its liquidity and custody capabilities for RLUSD. Since its launch in December 2024, RLUSD has achieved a circulating supply of over $500 million, though it remains a smaller player compared to market leaders like Tether’s USDT and Circle’s USDC [1]. Ripple has further solidified its regulatory approach by adding BNY as a reserve custodian and applying for a U.S. banking license last month, signaling its commitment to operating within the boundaries of the new regulatory environment [1].

Source: [1] Ripple to Acquire Rail for $200 Million in Push for Stablecoin Payments Dominance (https://coinmarketcap.com/community/articles/6894bf48ee5c4d37240e3c4e/)