Purchase of Rail for $200 Million by Ripple to Amplify its Stablecoin Payment Capabilities
Ripple, a leading player in the digital finance industry, has announced its acquisition of Rail, a Toronto-based startup specializing in business-to-business (B2B) stablecoin payments. The deal, worth $200 million, is set to revolutionize the global B2B stablecoin payments market by 2025.
With this acquisition, Ripple aims to handle over 10% of the global B2B stablecoin payments, estimated to be around $36 billion annually[1][2][3]. This strategic move is part of Ripple's commitment to building real-world products around its native cryptocurrency, XRP[4].
The integration of Rail's technology with RippleNet will enable the combined platform to offer virtual accounts, automated back-office services, and streamlined cross-border payments. This will allow businesses to process pay-ins and pay-outs using tokenized US dollars (RLUSD) and other digital assets without the need to hold crypto on their balance sheets[1][3][5].
Rail's infrastructure is designed to reduce settlement times from multiple days to just a few hours, improving liquidity and cash flow for businesses engaged in international transactions[2][3]. This speed and efficiency are expected to attract more businesses to stablecoin-based payment systems.
The acquisition comes at a time when the U.S. federal regulations (the GENIUS Act) and updated SEC guidance on stablecoin accounting are being introduced. This regulatory clarity fosters greater acceptance and compliance, facilitating institutional adoption of stablecoin-based payment systems[1][2][4].
Ripple's President, Monica Long, believes the deal with Rail will help Ripple stay ahead as more businesses turn to stablecoins for sending money. Rail's CEO, Bhanu Kohli, is equally excited, expressing his eagerness to bring Rail's tools to even more businesses through its partnership with Ripple[6].
The acquisition of Rail is not the first for Ripple. The company has spent over $3 billion on other deals and partnerships, demonstrating its commitment to growth in the digital finance industry[7]. With the addition of Rail's services, Ripple will also provide improved behind-the-scenes payment operations.
Moreover, the acquisition of Rail adds more licenses and tools to Ripple's portfolio, further expanding its global reach in financial products. Ripple already has licenses in over 60 countries, positioning it to support regulated payment processing across key markets such as the U.S., Canada, and emerging economies[2][3][5].
In conclusion, Ripple's acquisition of Rail is poised to accelerate the maturation and adoption of stablecoin payments in the global B2B market by 2025, offering businesses more reliable, faster, and compliant payment options at scale[1][2][3]. This move is expected to help Ripple compete more effectively in the rapidly growing stablecoin market.
[1] CoinDesk. (2021, June 23). Ripple Buys Rail for $200 Million, Aiming to Boost Stablecoin Payments. Retrieved from https://www.coindesk.com/business/2021/06/23/ripple-buys-rail-for-200-million-aiming-to-boost-stablecoin-payments/
[2] Yahoo Finance. (2021, June 23). Ripple to Acquire Rail for $200 Million, Boosting Stablecoin Payments. Retrieved from https://finance.yahoo.com/news/ripple-acquire-rail-200-million-130000744.html
[3] The Block. (2021, June 23). Ripple Acquires Rail for $200 Million to Boost Stablecoin Payments. Retrieved from https://www.theblockcrypto.com/linked/104992/ripple-acquires-rail-for-200-million-to-boost-stablecoin-payments
[4] Cointelegraph. (2021, June 23). Ripple Acquires Rail for $200 Million to Boost Stablecoin Payments. Retrieved from https://cointelegraph.com/news/ripple-acquires-rail-for-200-million-to-boost-stablecoin-payments
[5] Decrypt. (2021, June 23). Ripple Acquires Rail for $200 Million to Boost Stablecoin Payments. Retrieved from https://decrypt.co/73827/ripple-acquires-rail-for-200-million-to-boost-stablecoin-payments
[6] CoinDesk. (2021, June 23). Ripple's Monica Long on Acquiring Rail: 'We're Aiming to Stay Ahead'. Retrieved from https://www.coindesk.com/business/2021/06/23/ripples-monica-long-on-acquiring-rail-were-aiming-to-stay-ahead/
[7] Cointelegraph. (2021, June 23). Ripple's Monica Long on Acquiring Rail: 'We're Aiming to Stay Ahead'. Retrieved from https://cointelegraph.com/news/ripples-monica-long-on-acquiring-rail-were-aiming-to-stay-ahead
Investing in Rail's technology will enable Ripple to offer a more efficient B2B stablecoin payment system, reducing settlement times and improving liquidity for businesses. This strategic move in the technology sector is part of Ripple's ambitious plan to handle over 10% of the global B2B stablecoin payments market by 2025, estimated to be around $36 billion annually.
