XRP News Today: Ripple's $200M Rail Acquisition Aims to Strengthen Bank Charter Bid

Ripple’s recent $200 million acquisition of Rail has drawn attention from legal analysts as a strategic move timed to coincide with the dismissal of the SEC’s appeal, potentially boosting Ripple’s bid for a U.S. national bank charter and a Federal Reserve master account. Bill Morgan, a legal analyst, noted that the timing of the acquisition suggests Ripple’s intent to strengthen its regulatory position ahead of key legal developments [1]. The deal significantly expands Ripple’s footprint, adding to the existing 55 money transmitter licenses (MTLs) it holds across 33 U.S. states, as well as a New York BitLicense and a NYDFS trust charter. The acquisition of Rail’s virtual account system and automated back-office tools is expected to further enhance Ripple’s capabilities in stablecoin payments [1].

Monica Long, Ripple’s President, stated that the acquisition will drive the next phase of stablecoin adoption and innovation in global payments. Rail’s CEO Bhanu Kohli indicated the firm is on track to process over 10% of the $36 billion in global B2B stablecoin payments this year [1]. By comparison, Custodia Bank, which currently holds only a single Wyoming SPDI license, may find itself at a disadvantage in the regulatory approval process. Morgan highlighted Ripple’s broader licensing as a significant advantage in the competition for a Fed master account [1].

Despite the positive outlook from Ripple and its partners, not all industry voices are in agreement. Custodia Bank CEO Caitlin Long criticized Ripple and the XRP Ledger, claiming that banks do not trust the platform due to its perceived centralization and the large capital raised through Ripple’s initial coin offering (ICO). She also argued that Ripple’s pursuit of a national bank charter and stablecoin issuance indicates a belief that the XRP Ledger cannot replace SWIFT [1].

In response, Ripple CTO David Schwartz issued an open invitation to Caitlin Long to discuss the facts surrounding Ripple, its RLUSD stablecoin, the XRP Ledger, and XRP. This invitation reflects Ripple’s willingness to engage with criticism and continue its push into the regulated financial infrastructure space [1].

The acquisition underscores Ripple’s strategic focus on building a robust regulatory and operational framework that positions it as a key player in the evolving stablecoin landscape. As the company moves forward, it will be closely watched to see if its expanded capabilities translate into broader acceptance and adoption by banks and financial institutions.

Source:

[1] Ripple’s $200M Rail Deal Timed Perfect to Boost Its US Bank Charter Bid – Legal Expert (https://coinedition.com/ripple-rail-acquisition-bank-charter-custodia-debate/)