Ripple has announced plans to acquire Toronto-based payment infrastructure company Rail in a $200 million deal aimed at strengthening its footprint in the stablecoin sector. The acquisition is expected to close in the fourth quarter of 2025, subject to regulatory approval. Rail is known for its cross-border payment capabilities using tokenized dollars and is backed by investors including Galaxy Ventures and Accomplice. The move signals Ripple’s intention to scale its stablecoin initiative, RLUSD, at a time when regulatory clarity around stablecoins is increasing in the United States and globally. With the recent enactment of the GENIUS Act and updated guidance from the Securities and Exchange Commission (SEC) on stablecoin accounting practices, Ripple’s acquisition appears to be strategically timed to align with new compliance requirements. The comapny’s President Monica Long stated the deal will help broaden RLUSD’s reach as institutions adopt stablecoin-based payment systems. Rail’s Market Position and Ripple’s Expansion Strategy Rail projects that it will manage approximately 10% of the estimated $36 billion global business-to-business (B2B) stablecoin payment volume. By utilizing tokenized US dollars for cross-border transactions, Rail seeks to reduce settlement times from multiple days to just a few hours. Ripple aims to use Rail’s infrastructure to support regulated payment processing in key markets including the US, Canada, and selected emerging economies . The acquisition gives Ripple a customer-facing payments platform at a time when fintech firms and corporations are increasingly exploring compliant digital dollar solutions. According to the company, this will enhance RLUSD’s appeal among institutions seeking transparent and efficient payment rails. The deal also builds on Ripple’s previous acquisition activity, following a $1.25 billion agreement in April to purchase Hidden Road, a multi-asset prime broker focused on liquidity and custody services. Stablecoin Competition and Regulatory Context Ripple’s broader stablecoin strategy includes recent steps such as applying for a US banking license in July and partnering with Bank of New York Mellon for custody services . RLUSD, launched in December 2024, has grown to over $500 million in circulating supply. Despite this growth, the stablecoin market is still largely controlled by Tether’s USDT and Circle’s USDC. Ripple’s recent acquisitions suggest an ambition to position RLUSD as a serious competitor by providing both infrastructure and compliance under one umbrella. The GENIUS Act, signed into law earlier this summer, represents the first federal legislation in the US focused on payment stablecoins. As more institutions enter the space and demand for regulated stablecoins increases , Ripple appears to be preparing for accelerated adoption by enhancing its network capabilities and compliance infrastructure. Featured image created with DAL-E, Chart from TradingView
