Ripple Acquires Stablecoin Payments Firm Rail for $200 Million
Ripple has announced its acquisition of Rail, a Toronto-based stablecoin payments platform, for $200 million. This strategic deal positions Ripple to strengthen its digital asset infrastructure and expand RLUSD stablecoin adoption. The acquisition represents a significant move in Ripple’s broader stablecoin strategy as regulatory clarity improves across global markets.
Rail processes approximately 10% of global B2B stablecoin payments, handling around $3.6 billion in transaction volume. The platform specializes in cross-border payments using tokenized dollars and operates across multiple key payment corridors. The deal is expected to close by Q4 2025, subject to regulatory approval and standard closing conditions.
Rail’s Stablecoin Payment Infrastructure Powers Cross-Border Transactions
Rail leverages stablecoins to enable instant cross-border transactions with reduced fees for both fiat and digital payments. The platform addresses traditional pain points in international payments by reducing settlement times from days to hours. Rail’s capabilities include virtual accounts and automated back-office systems, enabling customers to transact in digital assets without opening dedicated crypto bank accounts or wallets on exchanges.
The Toronto-based company operates virtual account management systems that simplify stablecoin transactions for businesses. Founded as Layer2 Financial in 2021 by CEO Bhanu Kohli and CTO Tarun Mistry, Rail initially developed financial infrastructure for digital assets before pivoting to support global money movement for both standard currencies and stablecoins. Rail has attracted backing from notable investors including Galaxy Ventures and Accomplice.
RLUSD Stablecoin Expansion Through Strategic Rail Integration
The acquisition directly supports Ripple’s RLUSD stablecoin growth strategy across institutional markets. The combined platform will support premium digital asset liquidity, including RLUSD and XRP alongside stablecoins like USDT and USDC, with competitive pricing for high-value transactions. This integration creates comprehensive stablecoin payment solutions for enterprise customers.
RLUSD, launched in late 2024 with an institutional focus, has seen growing adoption. It recently secured regulatory approval from the Dubai Financial Services Authority, expanding its global reach. Rail’s infrastructure will enable businesses to accept stablecoin payments and payouts across key corridors without holding crypto on their balance sheets.
Ripple’s Billion-Dollar Investment Strategy Accelerates Digital Asset Infrastructure
This Rail acquisition forms part of Ripple’s aggressive expansion in digital asset infrastructure. Earlier in 2025, Ripple acquired Hidden Road, a crypto-friendly prime broker, for $1.25 billion, marking another major investment in the space. These strategic acquisitions demonstrate Ripple’s commitment to building comprehensive payment solutions.
To date, Ripple has invested over $3 billion in strategic acquisitions to build robust digital asset infrastructure. The company benefits from improved regulatory clarity following the SEC’s decision to drop its case against Ripple. This regulatory relief has enabled more aggressive expansion and strategic investments across the blockchain payments sector.
Global Stablecoin Payment Market Experiences Rapid Growth Through Enterprise Adoption
The stablecoin payments market continues expanding as businesses seek faster, cheaper cross-border transaction solutions. Stablecoins are quickly becoming a cornerstone of digital asset payments infrastructure, particularly for B2B transactions requiring rapid settlement. Traditional banking systems struggle to match the speed and cost efficiency of stablecoin-powered payment networks.
The acquisition comes amid expected wider acceptance of stablecoins in the U.S. Recent legislative developments and regulatory clarity have improved market conditions for stablecoin adoption. Enterprises increasingly view stablecoins as practical solutions for treasury management and international payments.
Strategic Integration Timeline and Market Implications for Digital Asset Payments
The acquisition is set to finalize in the fourth quarter of 2025, subject to regulatory clearance. Integration planning focuses on combining Rail’s virtual account management with Ripple’s existing payment infrastructure. The merged platform will offer comprehensive stablecoin payment solutions targeting enterprise customers globally.
With automation, virtual account management, and real-time settlement becoming critical differentiators, Ripple’s latest move places it at the forefront of the evolving payments landscape. This acquisition strengthens Ripple’s position against competitors in the digital asset payments space. The combined capabilities address the growing demand for efficient B2B stablecoin payment solutions.
Conclusion
Ripple’s $200 million Rail acquisition strategically positions the company to dominate stablecoin payment infrastructure. The deal combines Rail’s proven B2B payment processing capabilities with Ripple’s RLUSD stablecoin ecosystem. This integration creates comprehensive solutions for enterprises seeking efficient cross-border payment alternatives to traditional banking systems.
