Ripple has agreed to acquire Canadian payment infrastructure fintech Rail for $200 million, as part of an effort to “drive the next phase of innovation and adoption of stablecoins and blockchain in global payments”, according to president Monica Long.
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”.
