Ripple Acquires Rail for $200M to Strengthen Stablecoin Payment Infrastructure

Ripple has announced the acquisition of Rail, a stablecoin-powered payment platform, for $200 million, marking another strategic move in its broader vision to dominate the digital payment infrastructure sector [1]. This agreement was confirmed by Ripple’s CEO, Brad Garlinghouse, who highlighted the significance of the acquisition in bolstering Ripple’s ability to provide next-generation stablecoin payment solutions. The deal follows a previous report suggesting that Ripple aims to consolidate its influence in cross-border payments and owns the rails necessary for stablecoin operations [1].

Monica Long, Ripple’s President, emphasized that the acquisition aligns with the company’s mission to provide its global customer base with seamless, efficient, and unrestricted movement of funds. She noted that this step reinforces Ripple’s commitment to offering comprehensive digital payment solutions, particularly in a market where stablecoins are increasingly becoming foundational to modern financial systems [1].

Rail, a key player in the stablecoin payment space, is designed to facilitate international business payments at high speed through stablecoin technology. Its CEO, Bhanu Kohli, stated that Rail is projected to handle more than 10% of the $36 billion in global B2B stablecoin payments expected in 2025 [1]. This acquisition is expected to significantly expand Ripple’s capacity to support digital asset liquidity, including XRP and RLUSD, while providing competitive pricing for high-value transactions. Notably, the integration of Rail into Ripple’s ecosystem will allow customers to access stablecoin on/off ramps and asset flexibility without the need to hold crypto on their balance sheets [1].

Ripple’s acquisition strategy has been aggressive, with the company investing more than $3 billion in mergers and acquisitions since the launch of its expansion plan. This includes a previous, unsuccessful attempt to acquire stablecoin giant Circle with an offer of $4 to $5 billion [1]. Despite these challenges, Ripple remains focused on expanding its infrastructure and has submitted an application to establish a national bank. This initiative has faced pushback from 42 U.S. banks, who oppose the move on grounds of fiduciary duty, risk management, and systemic importance [1].

The acquisition of Rail is expected to enhance Ripple’s competitive edge in the fast-evolving stablecoin and cross-border payments market. It also underscores the company’s long-term ambition to serve institutional clients through a range of financial products and services, including virtual accounts, treasury payments, and banking partner networks [1]. With Rail’s infrastructure, Ripple aims to deliver always-on, enterprise-grade compliance and licensing solutions, further solidifying its position as a leader in the digital payments landscape [1].

Source: [1] Ripple Secures Rail for $200M to Power Next-Gen Stablecoin Payment Solutions (https://coinmarketcap.com/community/articles/6895d13af559a4772ef42d0a/)