Ripple has announced plans to acquire Canadian startup Rail for $200 million. This decision is aimed at speeding up international settlements and expanding the market for their RLUSD stablecoin.
Deal and Its Prospects
The acquisition of Rail is expected to close in the fourth quarter, pending regulatory approval. This move comes in light of growing interest in stablecoins, particularly following the passage of the GENIUS Act in the U.S.
Rail's Significance for Ripple
Rail, based in Toronto, specializes in tokenized dollar transfers and anticipates processing about 10% of the $36 billion global B2B payment volume this year. "The acquisition of Rail is a strategic step in Ripple's efforts to bring RLUSD to more enterprise customers," said Ripple President Monica Long.
Trends in the Stablecoin Market
The stablecoin market continues to evolve with increasing regulatory scrutiny in the U.S. and other countries. Such moves reaffirm Ripple's intention to adapt to new conditions and expand its offerings in the market.
The acquisition of Rail marks a significant step for Ripple, enhancing its settlement capabilities and increasing its presence in regulated markets across North America and beyond.
