Ripple announced Thursday that it will acquire stablecoin-powered payments platform Rail for $200 million, with the deal expected to close in the fourth quarter of 2025.

The company said the move aims to expand its enterprise-grade digital asset infrastructure and “deliver the most comprehensive stablecoin payments solution available in the market.”

Ripple expects the acquisition to enable it to offer stablecoin on- and off-ramps without requiring customers to hold cryptocurrency, and to facilitate customers in managing multiple payment types on behalf of themselves and their internal treasury flows.

The company also expects to support payments through various digital assets, including Ripple USD (RLUSD) and XRP (XRP). The platform will also streamline third‑party and treasury payments, virtual accounts, collections, 24/7 integration via a single API, enterprise-grade compliance and access to a multi-bank partner network.

Rail CEO Bhanu Kohli noted that Rail is projected to process more than 10% of global stablecoin payments in 2025, a market estimated to reach $36 billion worldwide, according to Artemis Analytics.

The acquisition furthers Ripple’s long-term strategic expansion through mergers and acquisitions, following approximately $3 billion in investments to date. In April, Ripple acquired crypto-friendly prime broker Hidden Road in a $1.25 billion deal.

Ripple did not respond to Cointelegraph’s request for comment by publication time.

Related: GENIUS sets new stablecoin rules but remains vague on foreign issuers

Ripple dives into stablecoins

The acquisition marks Ripple’s latest move to expand into the growing stablecoin sector. The company introduced its RLUSD stablecoin in late 2024, with CEO Brad Garlinghouse highlighting its institutional focus.

This focus set the RLUSD apart from most of its retail-focused competition, but data suggests that retail use of the stablecoin is growing. According to late July reports, RLUSD is increasingly making its way to self-custodial wallets like Xaman and integrations with developer platforms like Transak.

In mid-October 2024, Ripple also announced its partnership with cryptocurrency exchanges and platforms, including Uphold, Bitstamp, Bitso, MoonPay, Independent Reserve, CoinMENA and Bullish, to facilitate the distribution of RLUSD.

Related: Europe risks USD dominance without common stablecoin rules: ECB adviser

Regulatory expansion into Europe and beyond

In mid-July, Ripple confirmed its intention to pursue a Markets in Crypto-Assets Regulation (MiCA) license to expand into the European Union. A company spokesperson told Cointelegraph that the company intends to “become MiCA-compliant” as it recognizes a “significant opportunity in the European market.”

The news also follows Ripple’s stablecoin receiving approval from the Dubai Financial Services Authority, the financial regulator responsible for the Dubai International Financial Centre. The DIFC is a free economic zone and financial district with ties to the Middle East, Africa and South Asia, with nearly 7,000 registered businesses by the end of 2024.

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