Toronto-based fintech Rail (formerly known as Layer2 Financial) has been acquired by Ripple in a $275 million deal that will see the companies combine forces to deliver the most comprehensive stablecoin-powered payments platform on the market.
The acquisition, announced today, adds Rail’s virtual account infrastructure and back-office automation to Ripple’s existing global payments platform. Together, the firms aim to meet rising demand for stablecoin-based flows by enabling fast, compliant, and seamless cross-border transactions.
“Over the last four years, Rail built the fastest way to settle business payments internationally using stablecoins,” said Bhanu Kohli, CEO of Rail. “Ripple shares our vision, and together, we’re excited to bring our innovation to the millions of businesses that move money internationally.”
Founded in Toronto, Rail has emerged as a leader in stablecoin payments, enabling fintechs, neobanks, and enterprises to manage virtual IBANs, USD rails, and third-party payments through a single API. In 2025, the company is forecasted to process over 10% of the global $36 billion B2B stablecoin payments market.
Ripple, the San Francisco-based provider of enterprise blockchain and crypto solutions, said the deal builds on its global network of more than 60 licenses, competitive digital asset liquidity, and broad payout capabilities. The acquisition also reflects Ripple’s continued investment in M&A, with more than $3 billion spent to date on strategic expansion.
“Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation and adoption of stablecoins and blockchain in global payments,” said Monica Long, Ripple President.
Subject to regulatory approvals, the deal is expected to close in Q4 2025.
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