Ripple has confirmed the acquisition of Rail for $200 million, aimed at strengthening its position in the enterprise stablecoin sector. The deal is subject to final regulatory approval and is expected to close by the end of 2025.
Details of the Deal
Ripple announced the acquisition of Rail, a payments infrastructure company, to enhance its stablecoin capabilities. CEO Brad Garlinghouse stated that the acquisition will help position Ripple as a leader in institutional stablecoin settlements. The deal awaits final regulatory approval.
Functions of Rail
Rail offers virtual account management, third-party payment integration, and treasury automation. Ripple plans to integrate these functions into its existing payments network and API suite, providing financial institutions with a unified platform for issuing, transferring, and managing stablecoins.
Impact on the Stablecoin Market
Ripple’s own stablecoin, RLUSD, continues to gain traction in the market. With a market capitalization of $612.7 million and a daily trading volume of $45.26 million, RLUSD ranks 105th among crypto assets by market value. The acquisition of Rail underscores Ripple’s strategy to control the end-to-end stablecoin settlement infrastructure.
The deal with Rail and the integration of its technologies could significantly enhance Ripple's status as a leading player in the institutional stablecoin space and advance the company's efforts towards more efficient and cost-effective transactions for clients.
