Ripple to acquire stablecoin platform Rail for $200M to boost payment solutions

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Key Takeaways

Ripple is acquiring Rail for $200M to strengthen its stablecoin payments platform.
The acquisition will enhance RLUSD’s utility and Ripple’s position in the stablecoin market.

Ripple will acquire stablecoin payments platform Rail for $200 million, the company told Reuters on Thursday, following recent US legislation that could help mainstream digital assets.

The deal, expected to close in the fourth quarter pending regulatory approvals, aims to create “the most comprehensive stablecoin payments solution available in the market,” according to Ripple.

“As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail just really solidifies our market leadership in stablecoin payments,” said Monica Long, president of Ripple.

Toronto-based Rail, backed by Galaxy Ventures and Accomplice, handles 10% of global stablecoin-based payment activity. The platform enables cross-border transactions that are cheaper and settle within hours, compared to traditional fiat payment timelines.

The acquisition follows President Donald Trump’s July signing of legislation to establish federal regulatory oversight for stablecoins. These digital assets are designed to maintain a constant value, typically pegged 1:1 to the US dollar.

Ripple, which issues the XRP token and its RLUSD stablecoin, has been expanding its stablecoin infrastructure. In April, the company announced plans to acquire multi-asset prime broker Hidden Road for $1.3 billion to enhance RLUSD’s utility.

Ripple launched RLUSD, its US dollar-pegged stablecoin, last year to compete in a market dominated by Tether and Circle’s USDC.

This is a developing story. Please come back for further updates.