Ripple Buys Toronto Payment Firm Rail for $200 Million

The deal gives Ripple control of a platform that processes over 10% of global business-to-business stablecoin payments. Rail moves money across borders using digital dollars that stay stable in value, unlike volatile cryptocurrencies like Bitcoin.

Ripple’s official announcement said the purchase will create “the most comprehensive stablecoin payments solution available in the market.” The transaction should close by the end of 2025 after getting regulatory approval.

Rail, based in Toronto, built its business around making international payments faster and cheaper. The four-year-old company uses stablecoins – digital currencies pegged to the U.S. dollar – to settle business payments in hours instead of days.

CEO Bhanu Kohli said Rail expects to handle more than 10% of the $36 billion global stablecoin payment market in 2025. “Ripple shares our vision, and together, we’re excited to bring our innovation to the millions of businesses that move money internationally,” Kohli stated.

The company raised $10.7 million in funding from Galaxy Ventures and other investors before this acquisition. Rail’s platform lets businesses send payments without needing to open crypto accounts or wallets, removing technical barriers that often stop companies from using digital currencies.

The acquisition comes weeks after President Trump signed landmark stablecoin legislation called the GENIUS Act on July 18. This law creates the first federal rules for stablecoins, requiring companies to back them 100% with safe assets like U.S. dollars or Treasury bonds.

The new regulations also force stablecoin issuers to publish monthly reports showing what backs their digital currencies. This gives businesses more confidence to use stablecoins for payments, knowing the government now watches these companies closely.

Ripple President Monica Long said stablecoins are becoming essential to modern finance. “With Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments,” she explained.

This Rail purchase continues Ripple’s spending spree on payment companies. The firm has invested over $3 billion in acquisitions and partnerships, showing its serious commitment to dominating digital payments.

Source: @Ripple

In April, Ripple bought Hidden Road for $1.25 billion, one of the largest crypto deals ever. That purchase gave Ripple a prime brokerage that handles over $3 trillion in trades annually.

CEO Brad Garlinghouse called the Rail deal another step toward making Ripple the top choice for financial institutions. “Ripple + Rail together will be THE go-to provider of stablecoin payments infrastructure for global financial institutions around the world,” he wrote on social media.

The combined company will offer several advantages:

• Virtual accounts that let businesses use digital currencies without crypto wallets

• 24/7 payment processing through a single connection

• Access to multiple digital assets including Ripple’s RLUSD stablecoin and XRP

• Connections to over 60 global banking licenses

Ripple launched its RLUSD stablecoin in December 2024, and it now has over $600 million in circulation. This makes it one of the larger stablecoins by market size, though still far behind leaders like Tether’s USDT at $164 billion.

The Rail acquisition will help more businesses use RLUSD for international payments. Rail’s existing infrastructure can immediately support Ripple’s stablecoin, giving it access to a proven payment network.

XRP, Ripple’s main cryptocurrency, jumped 4.3% to $3.07 after the acquisition news broke. Investors see the Rail purchase as another sign that Ripple is building a comprehensive payments business beyond just its cryptocurrency.

The merger creates new options for companies that move money internationally. Traditional bank transfers can take days and cost significant fees, especially for smaller amounts. Rail’s stablecoin system processes payments in hours at lower costs.

Rail serves various types of businesses including traditional banks, fintech companies, and enterprise organizations. The company’s platform handles both regular currency and digital asset payments, giving customers flexibility in how they move money.

With Ripple’s global reach and regulatory licenses, Rail’s technology can now expand to new markets faster. The combined company will have access to payment corridors in over 60 countries, making international business payments simpler for more companies.

The Rail acquisition reflects broader changes in how money moves around the world. Major banks like JPMorgan Chase and retailers including Amazon are exploring their own stablecoin projects, showing growing acceptance of digital currencies for payments.

Ripple’s aggressive expansion puts pressure on competitors in the stablecoin space. With Rail’s technology and customer base, Ripple gains a stronger position against other payment providers trying to capture this growing market.

The deal still needs regulatory approval, which could take several months. However, the new federal stablecoin laws should make the approval process clearer than in previous years when crypto regulations remained uncertain..