Ripple Bets Big on Stablecoin Future with $200M Rail Takeover

Ripple, the San Francisco-based fintech company, has agreed to acquire Rail, a Toronto-based stablecoin payments platform, for USD 200 million. The acquisition, expected to close in the fourth quarter of 2025, is contingent on regulatory approvals and customary closing conditions. Rail offers virtual accounts, automated back-office tools, and services that streamline cross-border transactions through multiple banking partners. The integration of Rail’s technology into Ripple’s licensed global payments network aims to enhance efficiency and support the growing demand for stablecoin-based payment solutions [1].

Rail’s platform has developed over four years to accelerate international business payments using stablecoins. The company projects that its system will process more than 10% of the estimated USD 36 billion in global B2B stablecoin payments in 2025 [1]. Ripple emphasized that the acquisition will support the expansion of payment services that utilize stablecoins—such as RLUSD and XRP—without requiring customers to hold cryptocurrency directly [1]. Planned integrations include pay-in and pay-out options across key corridors and support for third-party and treasury payments [1].

This acquisition marks a significant step in Ripple’s strategy to expand its stablecoin infrastructure. Ripple has invested over USD 3 billion in acquisitions and strategic ventures since the beginning of its expansion efforts, with mergers and acquisitions continuing to serve as a core part of its growth strategy [1]. Monica Long, president of Ripple, highlighted the opportunity for stablecoin payments as a result of growing regulatory clarity and market maturity [2]. The acquisition, she said, solidifies Ripple’s leadership in the stablecoin payments space [2].

Rail’s services are already in use by over a dozen banks, enabling clients to route transactions through multiple channels for added redundancy. The platform’s use of stablecoins for cross-border payments offers cost-effective and faster settlement times compared to traditional fiat transactions [2]. Rail claims responsibility for 10% of global stablecoin-based payment activity, according to its website [2]. Ripple’s move to acquire Rail is also aligned with broader regulatory developments, such as the recent U.S. federal law signed by President Donald Trump in July 2025, which established a regulatory regime for stablecoins [2].

In parallel, Ripple has launched RLUSD, a U.S. dollar-pegged stablecoin designed to compete with major stablecoins like Tether and Circle’s USDC. As of early 2025, RLUSD has a market capitalization of over USD 611 million, compared to Tether’s USD 164 billion [2]. Ripple’s recent acquisition of Hidden Road, a multi-asset prime broker, for USD 1.25 billion further underscores its commitment to expanding RLUSD’s utility and market reach [2].

Ripple’s expansion of RLUSD is not limited to North America. The stablecoin has been extended to institutional users in Africa through partnerships with fintech platforms such as Chipper Cash, VALR, and Yellow Card. The initiative aims to provide a regulated digital dollar for enterprises engaged in remittances, treasury management, and tokenized asset trading [4]. RLUSD has surpassed USD 700 million in supply on the Ethereum and XRP Ledgers, and its use is being tested in climate insurance programs in Kenya. For example, funds are automatically released when satellite data indicates drought or extreme rainfall events [4].

The broader strategy of Ripple to integrate blockchain-based solutions with traditional financial systems is evident in its recent moves. The company is also exploring the possibility of obtaining a U.S. national bank charter, which would enable it to operate as a federally regulated trust bank and potentially hold reserves in central bank money [3]. This would enhance the credibility of its stablecoin operations and support 24/7 settlement capabilities [3].

Source:

[1] Ripple to acquire Rail for USD 200 million (https://thepaypers.com/mergers-aquisitions-and-investments/news/ripple-to-acquire-rail-for-usd-200-million)

[2] Ripple to buy stablecoin platform Rail for $200 million (https://www.aol.com/news/exclusive-ripple-buy-stablecoin-platform-122413419.html)

[3] Ripple vs. SWIFT: The Battle for Cross-Border Payments—... (https://www.ccn.com/education/crypto/ripple-vs-swift-blockchain-banking-behemoth/)

[4] Ripple Brings $700M RLUSD Stablecoin to Africa, Trials... (https://www.coindesk.com/business/2025/09/04/ripple-brings-usd700m-rlusd-stablecoin-to-africa-trials-extreme-weather-insurances)

[5] Ripple Expands Dollar-Backed Stablecoin RLUSD to Africa... (https://finance.yahoo.com/news/ripple-expands-dollar-backed-stablecoin-063813235.html)