Ripple Acquires Stablecoin Firm Rail for $200M

Ripple, known for issuing the RLUSD stablecoin, has announced its decision to acquire Rail, a Toronto-based payment company, for $200 million. This move aims to strengthen Ripple's foothold in the dollar-pegged payment sector as the regulatory landscape in the U.S. becomes clearer. The acquisition is anticipated to finalize in the fourth quarter, pending the necessary regulatory approvals. Rail, which is supported by Galaxy Ventures and Accomplice, projects that it will manage approximately 10% of the $36 billion global volume of B2B stablecoin payments. The company leverages tokenized dollars to expedite cross-border settlements, reducing processing times from days to just hours. The acquisition follows the recent signing of the GENIUS Act by President Donald Trump, which establishes the first regulatory framework for dollar-backed crypto assets in the U.S. Additionally, the SEC has released updated guidance regarding accounting rules for stablecoins. As compliance with this new framework accelerates, more institutions are considering entering a market projected to reach $2 trillion by 2028. Monica Long, Ripple's President, emphasized that acquiring Rail will allow RLUSD to expand its customer base in light of evolving stablecoin regulations in the U.S. and globally. This purchase provides Ripple with a regulated payment gateway in Canada, the U.S., and important emerging markets, which is especially vital as corporates and fintechs are seeking compliant stablecoin solutions. Furthermore, this acquisition is part of Ripple's ongoing purchasing spree. Earlier this year, Ripple agreed to a $1.25 billion deal to acquire Hidden Road, a multi-asset prime broker, enhancing liquidity and custody capabilities for RLUSD. Ripple has also secured Bank of New York Mellon as a reserve custody partner and applied for a U.S. banking license, aiming to bring RLUSD under regulatory oversight. Since its launch in December 2024, RLUSD has recently surpassed $500 million in circulating supply, even as the stablecoin market continues to be dominated by Tether’s USDT and Circle’s USDC, as reported by The Block’s data dashboard. Disclaimer: The Block is an independent media outlet providing news, research, and data about the crypto industry. As of November 2023, Foresight Ventures is a major investor in The Block but continues to operate independently. This article serves informational purposes only and does not constitute legal, tax, financial, or investment advice.