Crypto firm Ripple has reached an agreement to buy stablecoin platform Rail. This represents a massive boost for XRP and RLUSD, which play a significant role in the firm’s payment services.
Ripple Announces Agreement To Buy Stablecoin Platform Rail
In a press release, the crypto firm announced that it has agreed to buy Rail, a Toronto-based stablecoin-powered platform, for $200 million. It noted that with this deal, both companies will deliver the most comprehensive stablecoin payments solution available in the market.
Ripple further believes that this acquisition will boost its standing as the leader in crypto payments infrastructure. With the Rail deal, the crypto firm will now be able to offer virtual accounts and automated back-office infrastructure, streamlining operations.
This follows the company’s acquisition of the brokerage firm Hidden Road, earlier in the year, for $1.25 billion. Meanwhile, it comes at a time when the firm is also looking to secure a national banking license.
The Ripple Rail acquisition is still subject to customary closing conditions, including required regulatory approvals. However, they expect to close the deal in the fourth quarter of this year.
Meanwhile, Ripple also further highlighted the benefits of the Rail acquisition, including the fact that they will be able to provide premium crypto liquidity by supporting payments in RLUSD and XRP alongside other crypto assets. XRP serves as the bridge currency for the firm’s payment solutions, which is why this is huge for the altcoin.
Commenting on the deal, Ripple President, Monica Long, said,
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
She added that her company is one of the most widely used digital asset payment networks globally and that this acquisition underscores their commitment to helping their global customer base move money worldwide.
The company’s CEO, Brad Garlinghouse, also shared news of the acquisition on his X platform. He remarked that Ripple and Rail will work together to be the go-to provider of stablecoin payments infrastructure for global institutions around the world.
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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand.
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