August 4th – August 10th
PERSPECTIVES by Eric F. Risley
Momentum continues.
This week, crypto M&A activity surpassed 2024’s near-record levels, demonstrating the momentum that continues to build. This momentum has largely excluded a major cohort of acquirers: traditional financial services institutions, who are only now beginning to consider strategic acquisitions. This suggests more activity and larger transactions on the horizon.
Ripple has emerged as one of the crypto industry’s most significant acquirers, this week announcing the acquisition of crypto payment infrastructure provider Rail for $200 million. Rail allows fintechs, neobanks, payment providers, and enterprises to move money internationally using stablecoins with speed and transparency. Rail claims that 10 percent of all stablecoin payment activity runs on its infrastructure.
Ripple, historically known for XRP, its own payment token, has rapidly shifted to embrace stablecoins as an alternative. As highlighted recently, stablecoins have emerged as the “currency of payment” winner, beating out Bitcoin and others like XRP. Ripple launched its own U.S. dollar-pegged stablecoin, Ripple USD (RLUSD), in 2024 as an alternative to dominant stablecoins like Tether’s USDT and Circle’s USDC. Its recent acquisitions of Hidden Road and now Rail are efforts to proliferate RLUSD, while also supporting other stablecoins as well. Please see our M&A Alert analysis of the Rail acquisition here.
The stablecoin war, and crypto payments generally, has just begun.