- Ripple’s $200 million acquisition of Rail comes just before the dismissal of the SEC’s appeal, suggesting strategic timing.
- The deal significantly expands Ripple’s regulatory licenses across U.S. states.
- Legal analyst Bill Morgan believes it is strengthening its bid for a national bank charter and Fed master account.
Ripple’s strategic $200 million acquisition of Rail is already making waves in the XRP community amid its strategic timing. In particular, the deal comes just as Ripple secured a decisive end to its years-long battle with the SEC. Some industry observers believe the timing is no accident.
Attorney Sees “Convenient Timing” for Bank Charter Push
Attorney Bill Morgan suggested that Ripple’s Rail acquisition news breaking just before the SEC appeal dismissal may be deliberate. He pointed to Ripple’s ongoing efforts to secure both a national bank charter and a Federal Reserve master account.
Ripple already holds about 55 money transmitter licenses (MTLs) across 33 U.S. states, a New York BitLicense, a NYDFS trust charter, and numerous international licenses. Acquiring Rail adds even more licenses, further widening the company’s compliance reach.
What set the stage? This entire strategic play is possible because the SEC lawsuit is finally over. Here’s CoinEdition’s exclusive full report when the news broke today.
Morgan contrasted this with Custodia Bank, which holds only a single Wyoming SPDI license. He argued that Ripple’s broader licensing could give it a decisive edge in regulatory approvals.
Elon Musk’s Grok AI tool came to the same conclusion, saying Ripple’s licensing arsenal is a “significant advantage” in the race for a Fed master account.
Rail Deal Positions Ripple for Stablecoin Payments Dominance
San Francisco-based Ripple announced that Rail’s virtual account system and automated back-office tools will be integrated into its payments network.
Ripple President Monica Long said the acquisition will fuel the next phase of adoption and innovation of stablecoins in global payments. Rail CEO Bhanu Kohli revealed the firm is on track to process over 10% of the $36 billion global B2B stablecoin payments this year.
But Custodia Bank’s CEO Is Not Impressed
Not everyone is celebrating Ripple’s growing influence. Custodia Bank CEO Caitlin Long delivered a scathing critique of both Ripple and the XRP Ledger on a recent podcast.
Long claimed that “banks don’t trust XRPL” due to its perceived centralization and the large sums Ripple supposedly raised through its ICO. She also argued Ripple’s pursuit of a national bank charter and stablecoin issuance is an admission that XRPL will never replace SWIFT.
Moreover, Long speculated that if the U.S. Treasury tokenizes T-Bills, it would likely use a “mature and permissionless” network such as Ethereum rather than XRPL.
Ripple’s CTO: “Let’s Discuss the Facts”
Meanwhile, Ripple CTO David Schwartz responded to Long’s remarks, inviting her to discuss the facts about Ripple, RLUSD, XRPL, and XRP. His open invitation signals Ripple’s willingness to publicly address criticism as it moves deeper into regulated financial infrastructure.
Want the full story on that debate? Schwartz’s challenge to Long is a major story in itself. Here’s our original report on his open invitation.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
