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Ripple Expands Its Digital Payments Footprint with US$200 Million Acquisition of Rail
Ripple, the prominent player in the cryptocurrency industry known for its XRP digital asset, has recently announced its acquisition of the stablecoin-focused business-to-business (B2B) payments processing firm, Rail, for a substantial US$200 million (approximately AU$306 million). This pivotal deal, expected to close in the fourth quarter of 2025, marks a significant expansion of Ripple’s capabilities, positioning the company as a comprehensive provider of digital asset payments and custodial services.
Strategic Significance of the Acquisition
The acquisition enables Ripple to enhance its existing Ripple Payment Network by integrating Rail’s advanced virtual account and back-office functionalities, specifically tailored for cross-border business transactions. Ripple’s objective is to become a "one-stop shop" that bridges traditional payment methods with blockchain technology, allowing customers to access liquidity and stablecoin solutions more effectively.
Ripple’s President, Monica Long, emphasised the importance of stablecoins in contemporary finance and remarked on the potential for innovation and adoption of stablecoins and blockchain solutions in global payments, stating:
“Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments.”
The Role of Rail in B2B Payments
Established in 2021, Rail specialises in stablecoin-driven B2B payments, claiming to significantly reduce both the time and costs associated with traditional payment processes. As per Rail’s CEO, Braun Kohli, the firm managed to account for nearly 10% of the global B2B stablecoin settlement volume within just the first half of 2025. This growth trajectory underlines Rail’s relevance and potential contribution to Ripple’s expanding ecosystem.
Legislative Context: The GENIUS Act
The acquisition comes on the heels of a notable development in the US legislative landscape, as President Donald Trump recently enacted the GENIUS Act, a landmark piece of legislation governing stablecoins. Analysts view this law as particularly advantageous for Ripple, as it provides a favourable regulatory framework for the adoption of stablecoins like RLUSD, Ripple’s native stablecoin.
Austin King, co-founder of the Omni Network, remarked on Ripple’s advantageous position following the legislation’s passage:
“Ripple is uniquely positioned to benefit from this new legislation,” adding that it gives a competitive edge to stablecoins like RLUSD in attracting institutional interest.
Additionally, Yuri Brisov, a partner at Digital & Analogue Partners, noted the legislation’s potential to establish Ripple as a key liquidity provider within the US financial system, rivaling established players like USDC and PayPal USD.
Growth of Ripple’s Native Stablecoin, RLUSD
Since launching RLUSD in December 2024, Ripple has witnessed impressive growth in the stablecoin’s market capitalisation, which surged from approximately US$70 million (AU$107 million) at the year’s start to over US$620 million (AU$950 million) by early August. However, while RLUSD is on the rise, it still pales in comparison to leading stablecoins such as Tether (USDT) and USD Coin (USDC), which boast market caps of around US$164 billion (AU$251 billion) and US$65 billion (AU$99 billion), respectively.
In summary, Ripple’s acquisition of Rail not only strengthens the company’s infrastructure and product offerings but also aligns it strategically with new legislative developments in the US, positioning Ripple to accelerate its growth in the burgeoning stablecoin market. With the expected closing of the deal in 2025, Ripple is set to redefine its role in the digital payments landscape, catering to an evolving world demanding more efficient and cost-effective financial solutions.
