Ripple has purchased Toronto's rail system for a staggering $200 million, aiming to push forward the use of stablecoin payments in the urban transportation sector.
Ripple, a San Francisco-based provider of enterprise blockchain and crypto solutions, has announced the acquisition of Toronto-based fintech company Rail for $275 million. The deal, subject to regulatory approvals, is set to close in Q4 2025.
The acquisition is designed to create a unified and compliant framework for stablecoin payments, positioning Ripple as the leader in stablecoin payments infrastructure. The combined forces aim to deliver the most comprehensive stablecoin-powered payments platform on the market.
Rail, formerly known as Layer2 Financial, has emerged as a leader in stablecoin payments, particularly focusing on global B2B transactions. In 2025, Rail is forecasted to process over 10% of the global $36 billion B2B stablecoin payments market.
The acquisition includes Rail's advanced technology, including virtual accounts and an API-driven, compliant, and enterprise-grade payment system that streamlines treasury management, collections, and 24/7 global payments through a single platform. This integration will enhance payment speed, cost efficiency, and liquidity by combining Ripple’s global infrastructure and digital asset liquidity with Rail’s back-office automation and fiat-to-stablecoin bridging capabilities.
Rail's virtual account infrastructure and back-office automation are being added to Ripple's global payments platform. This will offer end-to-end stablecoin payouts without the need for customers to hold crypto on their balance sheets, thereby lowering operational barriers for businesses using stablecoins for payments.
Monica Long, President of Ripple, stated that stablecoins are quickly becoming a cornerstone of modern finance. She believes that with Rail, Ripple is uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments.
The acquisition is building on Ripple’s global network of more than 60 licenses. Ripple has spent more than $3 billion on strategic expansion through M&A. The deal between Ripple and Rail is expected to significantly enhance Ripple’s position and capabilities in the stablecoin-powered payments market.
Bhanu Kohli, CEO of Rail, expressed his excitement about the acquisition, stating that Rail shares Ripple’s vision for bringing innovation to the global money transfer industry.
The companies are working towards meeting the rising demand for stablecoin-based flows by enabling fast, compliant, and seamless cross-border transactions. The acquisition was announced today, and the combined forces are looking forward to delivering a seamless digital finance ecosystem that accelerates Ripple’s ambition to dominate the global stablecoin-powered payments market by the end of 2025.
- The acquisition of Rail by Ripple represents a strategic move to bolster both companies' positions in the stablecoin-powered business sector, with the aim of creating the most comprehensive stablecoin-powered payments platform in the market.
- The combined forces of Ripple and Rail will leverage Rail's technology, such as virtual accounts and a compliant, API-driven payment system, to improve payment speed, cost efficiency, and liquidity within Ripple's global infrastructure, enhancing their offerings in the finance and technology industries.
