- Ripple expands global payment reach with $200M stablecoin firm acquisition.
- Rail acquisition strengthens Ripple’s position in stablecoin transaction infrastructure.
- Ripple targets growing stablecoin flow through key infrastructure investment move.
Ripple is set to acquire Canadian stablecoin infrastructure firm Rail in a $200 million deal. The acquisition, reported by Reuters, is expected to close in the fourth quarter and will enhance Ripple’s position in the cross-border payments space.
Rail is a Toronto-based stablecoin company funded by Galaxy Ventures that allows international transactions to use stablecoins. The platform reportedly handles around 10% of global stablecoin flows. With this acquisition, Ripple will be able to incorporate Rail’s infrastructure into its more extensive financial network.
Ripple CEO Brad Garlinghouse stated that the combined entity will become a leading provider of stablecoin payment infrastructure for financial institutions. The transaction indicates that Ripple is still expanding in the booming stablecoin market.
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Strategic Expansion Through Stablecoin Infrastructure
Ripple’s RLUSD stablecoin, launched in December 2024, recently surpassed $600 million in market capitalization, according to data from CoinGecko. The company has been actively increasing its presence in digital payments by acquiring key players in the financial technology space.
In January, Ripple bought prime brokerage platform Hidden Road for $1.25 billion in one of its biggest transactions ever. These acquisitions indicate the firm’s aggressive approach to expanding its payment solutions and blockchain infrastructure.
According to Ripple President Monica Long, the Rail acquisition will enhance the company’s leadership in the stablecoin industry. She also informed CNBC that Ripple has billions of dollars on its balance sheet, which places the firm in a position to grow in the future by making strategic acquisitions.
Ripple has also been positively mentioned by Bitwise President Teddy Fusaro, who pointed out that Ripple is in a good financial position, which means that the company may acquire other companies that are in line with its ecosystem. The recent activity of Ripple shows that the company has a definite plan to penetrate the world of finance.
The $200 million acquisition of Rail by Ripple provides a crucial milestone in the development of the payment network. With the stablecoin market expanding, the deal reinforces Ripple’s role in shaping the infrastructure behind digital asset payments.
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