Ripple announced today that it will acquire Rail, a Toronto-based stablecoin payments platform, for $200 million. The deal, pending regulatory approval, is expected to close in Q4 2025.

Why Rail?

Ripple President Monica Long said the acquisition comes at the perfect time, given the newly clarified stablecoin regulatory framework in the US. Rail’s technology will enhance Ripple’s RLUSD stablecoin ecosystem with tools like virtual accounts, automated back-office systems, and streamlined compliance.

“Stablecoins are becoming a cornerstone of modern finance, and with Rail, we can lead the next phase of innovation in global payments,” Long said.

Rail currently handles about 10% of global stablecoin payment volume. The platform specializes in fast, low-cost cross-border transactions and offers enterprise-grade treasury and payout solutions.

Boost for RLUSD and Global Payments

Ripple plans to integrate Rail’s infrastructure directly with its RLUSD stablecoin, creating what it calls “the most comprehensive stablecoin payments solution on the market.”

This comes as US President Donald Trump recently signed a federal stablecoin law, providing much-needed clarity for the industry. Many analysts believe this will accelerate mainstream adoption of stablecoins for both consumers and businesses.

Ripple’s Aggressive Expansion Strategy

This isn’t Ripple’s first major move in 2025. Earlier this year, it acquired prime broker Hidden Road for $1.25 billion to boost RLUSD liquidity. It has also applied for a national banking license and a Federal Reserve master account to support regulated issuance and redemption of stablecoins.

Ripple has now spent over $3 billion on acquisitions and strategic investments, signaling a strong commitment to growing its influence in institutional-grade payments.

RLUSD’s Market Position

Ripple’s RLUSD stablecoin holds an ‘A’ rating from CoinEdition for its design and compliance standards. While its market cap of $612 million is still behind USDC and Tether, Ripple’s recent moves aim to close that gap by building a robust payments ecosystem.