tl;dr
Ripple has agreed to acquire Toronto-based payments platform Rail for $200 million to enhance its stablecoin payment services. The acquisition will allow Ripple to offer virtual accounts for digital asset transactions without digital wallets and simplify operations. Rail's infrastructure, supported ...
Ripple has entered into a $200 million agreement to acquire Rail, a Toronto-based payments platform, aiming to enhance its stablecoin payments services. The acquisition will enable Ripple to offer virtual accounts, allowing customers to transact in digital assets without creating a digital wallet, while simplifying operations. Rail's infrastructure, supported by over 12 banking partners, serves fintechs, payment providers, neobanks, and enterprise organizations, with built-in features for compliance, know-your-customer workflows, and transaction monitoring.
Ripple's President Monica Long emphasized that stablecoins are becoming fundamental to modern finance and highlighted the company's commitment to facilitating global money movement. The companies plan to focus on payment ramps that enable seamless swaps between stablecoins and traditional payment methods. Ripple's RLUSD stablecoin and the cryptocurrency XRP will be central to the enhanced payment capabilities enabled by this acquisition.
The RLUSD stablecoin, launched in December, holds a market capitalization of $611 million. Meanwhile, XRP rose 4.3% to $3.07 recently, although it has declined by 2.4% over the past two weeks. Ripple's expansion in the payments sector follows recent stablecoin legislation expected to accelerate growth, especially as traditional banks increase involvement. CEO Brad Garlinghouse announced the company filed for a banking license with the Office of the Comptroller of the Currency in July, marking a strategic pivot toward the traditional banking ecosystem. Ripple already operates under regulatory oversight in New York.
Earlier this year, Ripple made a significant acquisition by purchasing the crypto-friendly prime brokerage Hidden Road for $1.25 billion, underscoring its ambition to serve institutional clients on a larger scale. This deal ranks among the highest in Ripple's history, reflecting the firm's broader strategy to deepen its footprint in the financial services and cryptocurrency sectors.