Ripple Labs (XRP) has announced that it is acquiring stablecoin platform Rail in a deal worth approximately $200 million. Ripple has invested heavily in stablecoin infrastructure in recent months, even launching its own RLUSD stablecoin. The acquisition – which will close in the fourth quarter of this year, pending regulatory approvals – will enable Ripple and Rail to “deliver the most comprehensive stablecoin payments solution available in the market,” according to Ripple Labs.
“As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail just really solidifies our market leadership in stablecoin payments,” said Monica Long, president of Ripple, in an interview. According to the software and crypto giant, the deal will also add virtual accounts and automated back-office processes to Ripple’s existing payments capabilities.
In addition, Ripple Labs (XRP) said in April that it would also buy multi-asset prime broker Hidden Road in a $1.25 billion deal, one of its largest acquisitions yet, which it said would enhance RLUSD’s utility. Ripple launched RLUSD, a stablecoin pegged to the U.S. dollar, last year, as it sought to disrupt the market dominated by Tether and Circle’s USDC. RLUSD has a market capitalization of over $600 million already at press time.
Also Read: XRP Breakout Nears: All Eyes on the Crucial $3.41 Threshold
Rail says on its website that the company is responsible for 10% of all global stablecoin-based payment activity. The move assists Ripple in gaining ground within the emerging stablecoin market in the US. In the last month, the US Government has approved several pro-crypto bills, including the stablecoin bill known as the Genius Act. Stablecoin issuers like Circle and Tether are surging, and institutional interest in stablecoins is at an all-time high.
Ripple’s native XRP cryptocurrency is up 3% today following the news and is riding a 34% rally in the past month. The acquisition could provide fuel to the crypto assets’ price as it targets $3.50 next.
Credit: Source link
