Ripple Announces Acquisition of Toronto-Based Rail Stablecoin for $200 Million

Moving Closer to Tether and Circle

Ripple, a prominent San Francisco-based blockchain company known for its XRP token and cross-border payments network RippleNet, has launched RLUSD, a USD-pegged stablecoin, by the end of 2024. This is a significant step forward in the stablecoin space. Ripple is taking advantage of regulatory changes in the United States to strengthen its position in competition with major players such as Tether (USDT) and Circle (USDC). Rail, formerly known as Layer2 Financial and backed by funds such as Galaxy Ventures and Accomplice, was founded in 2021 and focuses on stablecoin-based payment infrastructure.

The event kicked off with an official announcement from Ripple on August 7, 2020 confirming the acquisition of Rail for $200 million, which is expected to close in Q4 2020, subject to regulatory approval. To integrate Rail’s payment infrastructure, including back-end automation and virtual accounts, into Ripple’s global payment network, the transaction includes both cash and shares. Rail boasts of processing about 10% of global B2B stablecoin payments, or $36 billion, and has built a platform that uses stablecoins to reduce costs and allow cross-border transactions to be settled in hours instead of days.

The move reportedly comes shortly after US President Donald Trump signed the GENIUS Act in July 2025, which creates a federal regulatory framework for digital assets and promotes their wider adoption. With RLUSD reaching a market capitalization of over $611 million, Ripple is seen as an opportunity to expand its position, especially at a time when the global stablecoin market is valued at hundreds of billions of dollars. Initial reactions from the community have been positive, with XRP prices rising slightly to around $3.07. However, some on social media have questioned its long-term impact.

Conclude

The Rail acquisition solidifies Ripple’s position as a leading stablecoin payment infrastructure provider, allowing for the integration of RLUSD and XRP into global enterprise payment solutions. This could increase its competitiveness against USDT and USDC, especially as Rail brings fast and compliant payment technology to markets such as the US, Canada, and emerging economies. For Rail, the merger with Ripple opens up opportunities for scale, leveraging Ripple’s global network and over 60 payment licenses, allowing it to process more B2B transactions.

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