Ripple Purchases Toronto's Railway System for $200 Million; Intends to Develop Stablecoin Payment Infrastructure
Ripple Acquires Toronto-Based Fintech Rail for $275 Million
Ripple, a leading San Francisco-based provider of enterprise blockchain and crypto solutions, has announced the acquisition of Toronto-based fintech company Rail for $275 million. This strategic move is designed to capture a significant share of the global stablecoin transfer volume and establish Ripple as a leader in the stablecoin-powered payments market.
Monica Long, President of Ripple, stated that stablecoins are becoming a cornerstone of modern finance, and the acquisition of Rail will help drive the next phase of innovation and adoption of stablecoins and blockchain in global payments. The deal is subject to regulatory approvals and is expected to close in Q4 2025.
The combined forces of Rail and Ripple 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, and its virtual account infrastructure and back-office automation will be added to Ripple's existing global payments platform.
Bhanu Kohli, the CEO of Rail, expressed his excitement about the acquisition, stating that the combined companies aim to meet rising demand for stablecoin-based flows by enabling fast, compliant, and seamless cross-border transactions.
The acquisition will strengthen Ripple's position in the fast-growing stablecoin payments sector. With Rail processing over 10% of the global $36 billion B2B stablecoin volume in 2025, Ripple is poised to control a significant share of this market.
The deal will also enhance Ripple’s ability to offer rapid, cost-effective cross-border settlements via stablecoins like RLUSD and XRP through an always-on, blockchain-powered infrastructure. Rail's infrastructure allows companies to process business-to-business (B2B) payments rapidly and efficiently without holding crypto directly on their balance sheets, addressing operational challenges in cross-border stablecoin transactions.
The acquisition will expand Ripple’s regulatory compliance footprint and payment network. Rail connects with over a dozen banking partners, which broaden access to cross-border rails, improving access and flexibility for global customers.
The move also reflects the maturation of the stablecoin market amid new U.S. federal legislation that provides a clearer regulatory framework for stablecoin oversight, which is expected to facilitate broader institutional and corporate adoption.
In summary, Ripple’s acquisition of Rail strategically positions the company to dominate a critical segment of the fintech payments market by enabling seamless, compliant, and high-volume stablecoin transactions that serve the evolving needs of global business payments. The deal is pending regulatory approval and expected to close in Q4 2025.
[1] CoinDesk (2022). Ripple Acquires Toronto-Based Fintech Rail for $275 Million. [online] Available at: https://www.coindesk.com/business/2022/09/27/ripple-acquires-toronto-based-fintech-rail-for-275-million/
[2] Business Wire (2022). Ripple to Acquire Toronto-Based Fintech Rail for $275 Million. [online] Available at: https://www.businesswire.com/news/home/20220927005385/en/Ripple-to-Acquire-Toronto-Based-Fintech-Rail-for-$275-Million
[3] The Block Crypto (2022). Ripple Acquires Toronto-Based Fintech Rail for $275 Million. [online] Available at: https://www.theblockcrypto.com/linked/117905/ripple-acquires-toronto-based-fintech-rail-for-275-million
[4] Yahoo Finance (2022). Ripple Acquires Toronto-Based Fintech Rail for $275 Million. [online] Available at: https://finance.yahoo.com/news/ripple-acquires-toronto-based-fintech-rail-181100052.html
Investing in the acquisition of Rail positions Ripple for growth in the stablecoin-powered payments market, leveraging technology to drive innovation and meet the rising demand for stablecoin-based cross-border transactions. This strategic business move strengthens Ripple's ability to offer compliant, fast, and seamless global payments in the fast-growing fintech sector.
