Aug 7 (Reuters) - Ripple will buy stablecoin payments platform Rail for $200 million, the company said on Thursday, weeks after U.S. President Donald Trump signed a law that raised expectations cryptocurrency tokens are about to enter the mainstream.
Ripple, a crypto company that is closely associated with the token XRP and issues its own stablecoin called RLUSD, has invested heavily in stablecoin infrastructure in recent months.
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," it said.
It will also add virtual accounts and automated back-office processes to Ripple's existing payments capabilities, the company said in a release.
"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.
Source:
Reuters