Ripple has announced its intention to acquire the Canadian stablecoin firm Rail for $200 million. This acquisition is expected to close in the fourth quarter and will strengthen Ripple's position in international payments.
Strategic Purchase of Rail
Rail is a Toronto-based company funded by Galaxy Ventures, reportedly handling around 10% of global stablecoin flows. By acquiring Rail, Ripple will integrate its infrastructure into its broader financial network.
Expansion Through Stablecoin Infrastructure
Ripple's RLUSD stablecoin, launched in December, recently surpassed $600 million in market capitalization. The company has been actively increasing its presence in digital payments by acquiring key players in financial technology.
Future Plans and Financial Situation
Ripple President Monica Long stated that the Rail acquisition will enhance the company’s leadership in the stablecoin sector. She also informed CNBC that Ripple has billions on its balance sheet, placing it in a position to grow through strategic acquisitions.
The $200 million acquisition of Rail emphasizes Ripple's determination to strengthen its position in the evolving stablecoin market.
