The deal is expected to close in Q4 2025, subject to regulatory approval and other customary closing conditions.

Initially founded as Layer2 Financial by CEO Bhanu Kohli and CTO Tarun Mistry in 2021, Rail operates a platform that connects stablecoins with traditional fiat currency systems, enabling cost-effective cross-border payments through a single API. The infrastructure is said to be on track to process around 10% of all global B2B stablecoin payments this year, with use cases spanning accounts payable, accounts receivable, and treasury management. 

Rail maintains a network of 12+ banking partners to ensure redundancy, and also provides virtual IBANs and named accounts that allow businesses to transact with digital assets without needing dedicated crypto bank accounts or wallets. The company, based in Toronto, is backed by the likes of Galaxy Ventures and Accomplice.

With the technology, Ripple says it plans to offer “the most comprehensive stablecoin payments solution available in the market”. This combined solution is to support USD pay-ins and pay-outs across key corridors, new capabilities for third-party payments and internal treasury flows, and digital asset liquidity across various assets.

Ripple has been working to bridge the gap between traditional and decentralized finance (DeFi). Including Rail, the San Francisco-headquartered crypto and blockchain solutions firm says it has now spent over $3 billion on acquisitions and “strategic opportunities” to date, adding that it “remains committed to actively expanding through M&A”.

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CEIC returned to support this latest round, which was led by Tether and IDG Capital, with added support from Primal Capital, 1kx, Protein Capital, KX VC, 3KVC, Genting Ventures, Fuel Ventures, and Umami Capital.

The Miami-headquartered company will use the funds to scale its platform, which combines fiat on and off ramps with virtual bank accounts, real-time liquidity routing, and full-stack compliance tools.

The Transak platform is currently used by over 450 applications to offer fiat to stablecoin conversion through local payment methods, bank transfers, cards, and virtual IBANs, and has processed over $2 billion in transaction volume to date. Other core services include a checkout function for purchasing non-fungible tokens (NFTs) directly with fiat currency, as well as multi-level know-your-customer (KYC) solutions.

Web3 onboarding was the initial concept behind Transak, which was founded by CEO Sami Start and CTO Yeshu Agarwal in 2019. The company went on to launch its on-ramp solution in February the following year.

“Stablecoins are no longer just a crypto asset. They are now the rails for global value transfer,” Start comments, stating that a scaled application requires “real infrastructure” over just liquidity. “That’s exactly what we’ve built, and this round helps us scale it globally,” he continues.

Transak currently holds regulatory approvals in the US, UK, EU, Canada, Australia and India, and states that an expansion into the Middle East, Latin America, and Southeast Asia is “actively underway”.

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