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Ripple to Acquire Stablecoin Platform Rail for $200 Million
In a major move to boost its payment solutions, blockchain giant Ripple has announced plans to acquire Toronto-based stablecoin platform Rail for a staggering $200 million. This significant acquisition is set to close in the fourth quarter pending regulatory approvals.
According to Ripple’s President, Monica Long, the deal will enable the company to create “the most comprehensive stablecoin payments solution available in the market.” The acquisition follows recent US legislation aimed at establishing federal regulatory oversight for stablecoins, a move that could help mainstream digital assets.
Rail, which has received backing from Galaxy Ventures and Accomplice, reportedly handles 10% of global stablecoin-based payment activity. The platform is notable for enabling cross-border transactions that are significantly cheaper and settle within hours, compared to traditional fiat payment timelines.
This acquisition comes on the heels of Ripple’s plans to acquire multi-asset prime broker Hidden Road for $1.3 billion earlier this year. The goal of these purchases is to enhance RLUSD’s utility, a US dollar-pegged stablecoin launched by Ripple last year in an effort to compete with market leaders Tether and Circle’s USDC.
The news highlights Ripple’s aggressive push into the stablecoin arena, as it seeks to strengthen its position in this burgeoning space.
Source: cryptobriefing.com
