- Ripple has announced it is acquiring the stablecoin payments platform Rail for $200 million.
- The deal comes shortly after a new US federal law provided regulatory clarity for stablecoins.
- The acquisition is part of a larger, multi-billion dollar M&A strategy by Ripple.
Ripple announced today that it will acquire Rail, a Toronto-based stablecoin payments platform, for $200 million. The deal is expected to close in Q4 2025, pending regulatory approval.
Why is Ripple buying Rail?
According to Ripple President Monica Long, this acquisition is timely given the newly clarified regulatory environment. It boosts Ripple’s stablecoin infrastructure with vital capabilities like virtual accounts and automated back-office systems.
She stated: “Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments.”
Rail, backed by Galaxy Ventures and Accomplice, processes roughly 10% of all global stablecoin payment activity, offering faster and more cost-efficient cross-border payments using stablecoins.
The stablecoin payments platform brings infrastructure for virtual accounts, collection tools, and streamlined compliance, enabling enterprise-grade stablecoin payouts and treasury operations.
Combined with Ripple’s RLUSD stablecoin, these improvements aim to deliver what Ripple called in its press release “the most comprehensive stablecoin payments solution available in the market.”
Timing: A new US stablecoin law in effect
The announcement closely follows the signing of federal legislation by US President Donald Trump, which establishes a clear framework for stablecoins.
Many see this as a very positive sign that stablecoins will start being used by more people and businesses, and Ripple’s Rail acquisition might be an additional step towards that.
Ripple has been busy lately
Earlier this year, Ripple announced a purchase of the prime broker Hidden Road for $1.25 billion to strengthen RLUSD’s liquidity and service offerings.
The company has also applied for a national banking license and a Federal Reserve master account via its subsidiary. Its plans are to offer regulated stablecoin issuance and redemption services, further solidifying its efforts toward institutional integration.
With today’s announcement, Ripple has spent more than $3 billion on buying other companies and making key investments, as the company demonstrated a consistent commitment to expanding its business through mergers and acquisitions.
But how good is RLUSD? Ripple is spending big to build around its stablecoin. An earlier CoinEdition analysis has broken down why RLUSD earned a top ‘A’ rating.
Although RLUSD’s market capitalization remains notably smaller than that of established stablecoins like USDC and Tether, it’s positioned to gain ground as Ripple is actively working on building the foundation for its stablecoin. According to CoinMarketCap, RLUSD’s market cap is above $612 million.
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