Ripple Set to Amplify Stablecoin and XRP Payment Services through $200 Million Acquisition of Rail Asset
Ripple, the global leader in blockchain-based payments, has announced its acquisition of Rail, a Toronto-based stablecoin platform, for $200 million. This move is expected to significantly enhance Ripple's stablecoin infrastructure and accelerate the adoption of its RLUSD stablecoin.
Rail's unique features, including stablecoin-powered cross-border payments, virtual accounts, automated back-office processing, and compliance focus, will be integrated into Ripple's existing network. These features will allow Ripple to deliver comprehensive stablecoin payments services, catering to the growing demand for stablecoins in modern finance.
Rail's platform enables fast, low-cost international business-to-business transactions using stablecoins, significantly reducing settlement times from multiple days to just a few hours. The platform also provides virtual account capabilities, simplifying customer engagement with digital assets and improving user experience.
Moreover, Rail automates operational workflows through back-office systems, enhancing efficiency for fintechs, neobanks, payment providers, and enterprises moving money internationally. The platform also offers seamless conversion between US dollars and tokenized stablecoins, supporting regulated payment processing in key markets such as the US, Canada, and emerging economies.
Rail operates through licensed entities under FINCEN (US) and FINTRAC (Canada) as a money service business and partners with over a dozen regulated banks worldwide to ensure secure, compliant fund transfers. The platform's infrastructure includes partnerships with more than 12 banks globally, providing redundancy and reliability in payment corridors.
Rail's real-time international payment technology is integrated with Ripple's network, streamlining diverse payment flows and scaling stablecoin capabilities. The platform will also support payments in Ripple's newly launched RLUSD stablecoin, as well as XRP, facilitating 24/7 system integration via a single API and enabling various payment types such as third-party transactions and internal treasury flows on one platform.
Ripple's President, Monica Long, stated that the acquisition underscores their commitment to helping their global customer base move money. She added that the acquisition will allow Ripple to expand its stablecoin infrastructure, enhance compliance capabilities, and accelerate the adoption of its RLUSD stablecoin while supporting regulated, transparent, and efficient cross-border payments.
Ripple's CEO, Brad Garlinghouse, also stated that the company filed for a banking license with the Office of the Comptroller of the Currency in July. This move further demonstrates Ripple's commitment to regulatory compliance and its aim to serve institutional clients on a larger scale.
The acquisition of Rail is among the most highly valued deals in Ripple's history, following its acquisition of the crypto-friendly prime brokerage Hidden Road for $1.25 billion earlier this year. This acquisition is expected to accelerate Ripple's activities in the payments space, with the company moving toward the traditional banking system.
Despite the increase in Ripple's activities, XRP, Ripple's cryptocurrency, has slumped 2.4% over the past two weeks. However, XRP had a 4.3% increase on Thursday, reaching $3.07, according to CoinGecko.
Stablecoins are quickly becoming a cornerstone of modern finance, according to Ripple. With the acquisition of Rail, Ripple is positioning itself at the forefront of this trend, aiming to provide a more efficient, compliant, and user-friendly stablecoin solution for businesses worldwide.
- Ripple's acquisition of Rail, a Toronto-based stablecoin platform, for $200 million will significantly enhance Ripple's stablecoin infrastructure, accelerating the adoption of its RLUSD stablecoin.
- Rail's stablecoin-powered cross-border payments, virtual accounts, automated back-office processing, and compliance focus will be integrated into Ripple's existing network, allowing Ripple to deliver comprehensive stablecoin payments services.
- Rail's platform enables fast, low-cost international business-to-business transactions using stablecoins, reducing settlement times from multiple days to just a few hours.
- The acquisition of Rail will also support payments in Ripple's newly launched RLUSD stablecoin, as well as XRP, facilitating 24/7 system integration via a single API and enabling various payment types.
- Ripple operates through licensed entities under FINCEN (US) and FINTRAC (Canada) as a money service business, and the platform's infrastructure includes partnerships with over 12 banks globally, providing redundancy and reliability in payment corridors.
- Stablecoins are quickly becoming a cornerstone of modern finance, and with the acquisition of Rail, Ripple is positioning itself at the forefront of this trend, aiming to provide a more efficient, compliant, and user-friendly stablecoin solution for businesses worldwide.
