Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Ripple Acquires Rail for $200M to Boost Stablecoin Payments
M&A | Aug 8, 2025
Ripple's $200M Acquisition of Rail Strengthens Stablecoin Payment Capabilities
On August 7, 2025, enterprise blockchain digital payment leader Ripple announced that it's entered an agreement to acquire Rail, a Toronto-based stablecoin global payments platform for $200 million. The acquisition will boost Ripple’s stablecoin infrastructure and solidifies its position as a leader in the digital asset payments industry.
Rail’s Canadian Roots
Founded in 2021 by Bhanu Kohli and Tarun Mistry as Layer2 Financial, Rail is a Canadian-registered company based in Toronto, Ontario. The company's mission from the start was to build a platform that would enable instant, transparent, and reliable international payments for businesses using stablecoin technology alongside fiat support. Rail’s focus on combining digital asset infrastructure with compliance made it an ideal fit for a growing cross-border payments market.
In 2024, Rail rebranded to its current name and raised $10.7 million in Series A funding.
To date in 2025, Rail processed over 10% of the global $36 billion in B2B stablecoin payments, flexing it's growth and benchmarked market share.
Rail is officially registered in both Canada and the United States. Its registration as a money services business with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the U.S. Financial Crimes Enforcement Network (FinCEN) further underscores its commitment to meeting regulatory standards and building a trusted platform for cross-border payments.
Why Ripple and Rail Are a Great Fit
Rail's infrastructure improves Ripple’s stablecoin payment capabilities, especially in the growing B2B payments sector. Ripple has spent over a decade building digital asset infrastructure that integrates seamlessly with traditional finance. Ripple’s platform offers businesses secure, compliant tools for storing, trading, and transferring value, making it an ideal complement to Rail’s innovative stablecoin solutions.
See: Citi and BofA Plan Stablecoins as Regulation Advances
Monica Long, Ripple President:
“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. Ripple has one of the most widely used digital asset payment networks in the world, and this acquisition underscores our commitment to helping our global customer base to move money wherever and whenever they need.”
Ripple's Expanding Offering and The Future of Payments
Ripple’s expanded offering will allow businesses to process stablecoin pay-ins and pay-outs across key financial pathways, such as USD, without needing to hold crypto on their balance sheets. This simplifies the payment process for companies and it's cost effective for international transactions.
Beyond stablecoin transfers, the Ripple-Rail offering will enable businesses to manage third-party payments and internal treasury flows seamlessly through a unified platform. Rail’s automated back-office infrastructure provides an always accessible 24/7 global payment network via a single API. So customers have access to a reliable payment solution at all times.
See: Ripple Seeks US Bank Charter for Stablecoin Expansion
Ripple also recently acquired a multi-asset prime broker Hidden Road for $1.25 billion on April 8, 2025.
In addition to the acquisitions, Ripple's growth is benefiting from positive regulatory sentiment in the U.S. The SEC dropped its case against Ripple regarding its XRP token, and the approval of the U.S. Senate's Genius Act earlier this year, establishing a framework for stablecoin regulation.
Bhanu Kohli, CEO Rail:
“Over the last four years, Rail built the fastest way to settle business payments internationally using stablecoins, and in 2025, Rail is forecasted to process over 10% of the $36B global B2B stablecoin payments. Ripple shares our vision, and together, we’re excited to bring our innovation to the millions of businesses that move money internationally.”
Why This Matters
By combining Ripple’s established network with Rail’s innovative stablecoin infrastructure solutions, the two companies will provide more comprehensive solutions for businesses that need to move money across borders. As stablecoin adoption continues to rise, businesses will increasingly look for solutions that simplify cross-border payments while ensuring compliance with global regulations.
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