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Ripple to Acquire Stablecoin Platform Rail for $200M to Boost Payment Solutions
In a significant move aimed at strengthening its position in the digital asset market, Ripple has announced it will be acquiring Toronto-based stablecoin payments platform Rail for $200 million. The acquisition, which is expected to close in the fourth quarter pending regulatory approvals, is seen as a major development in the rapidly evolving space of digital assets.
The deal aims to create “the most comprehensive stablecoin payments solution available in the market,” according to Monica Long, President of Ripple. The acquisition will undoubtedly bolster RLUSD’s utility and further solidify Ripple’s position as a leader in the stablecoin market.
Rail, which is backed by Galaxy Ventures and Accomplice, has been instrumental in enabling cross-border transactions at significantly reduced costs and with faster settlement times compared to traditional fiat payment timelines. With this acquisition, Ripple will be able to expand its reach and increase its influence within the stablecoin ecosystem.
The move comes on the heels of recent US legislation aimed at establishing federal regulatory oversight for stablecoins. These digital assets are designed to maintain a constant value, typically pegged 1:1 with the US dollar. The company’s RLUSD stablecoin was launched last year as part of Ripple’s efforts to compete in a market dominated by Tether and Circle’s USDC.
The acquisition follows Ripple’s earlier announcement in April that it plans to acquire multi-asset prime broker Hidden Road for $1.3 billion, aimed at enhancing the utility of RLUSD.
Source: cryptobriefing.com
