Ripple Buys Rail for $200M as Bill Morgan Calls Out “Convenient Timing”

Ripple Labs recently scored a major win after both sides filed to dismiss their appeals in the long-running SEC lawsuit. The case, which accused Ripple of selling XRP as an unregistered security, had been a major shadow over the company’s future. 

Interestingly, around the same time, Ripple annou2nced its $200 million acquisition of Rail, a stablecoin-powered global payments platform believed to hold multiple U.S. money transmitter licenses. 

The timing has the crypto community buzzing. Is this the start of a fresh, new chapter for Ripple?

Ripple and Rail Unite for 24/7 Global Payments

The deal merges Ripple’s liquidity, licenses, and payout network with Rail’s virtual accounts and automation, enabling easy stablecoin and digital asset transactions without holding crypto directly. Together, they will offer 24/7 global payments via one API, supported by strong compliance and a multi-bank network. 

The deal is expected to close in Q4 2025, pending approvals.

Will This Deal Boost Ripple’s Regulatory Edge?

Lawyer Bill Morgan pointed out the “convenient timing” of the Rail acquisition news breaking just before the SEC appeal dismissal. He suggests that it is no coincidence, and this could boost Ripple’s regulatory reach.

Ripple already holds about 55 money transmitter licenses in 33 U.S. states, and its RLUSD stablecoin is regulated. By acquiring Rail, it likely adds even more licenses, which gives it a stronger foundation for federal banking applications.

Ripple’s Licensing Edge Sparks Debate

Morgan compared Ripple to Custodia Bank and noted that Ripple’s extensive state licensing gives it a clear advantage over Custodia Bank, which holds only a single Wyoming SPDI license. He said this broader reach is supported by XRP sales, which help fund acquisitions such as Rail. 

This comes as Custodia CEO Caitlin Long criticized Ripple for being centralized with “backwards” tokenomics and lacking bank trust. She also said Ripple’s shift to a regulated stablecoin shows its base layer didn’t gain adoption. 

However, the XRP community hit back, accusing her of bias and frustration over Custodia’s regulatory hurdles. 

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Ripple’s Strategic Partnerships in 2025

Ripple has already invested over $3 billion in mergers and acquisitions this year as part of its ongoing strategy to grow its ecosystem. One of the biggest moves in 2025 was the $1.25 billion acquisition of Hidden Road, a global prime brokerage firm.

Furthermore, in July 2025, Ripple joined forces with Ctrl Alt to support Dubai’s Real Estate Tokenization Project, providing custody for tokenized title deeds on the XRP Ledger, which marked its first significant custody deal in the UAE.

Ripple has also teamed up with top banks like DZ Bank, BBVA Switzerland, and DekaBank via Metaco to offer safe custody and tokenization services for big institutional clients.

XRP price rose around 7% after the SEC and Ripple filed to dismiss their appeals. It is currently trading at $3.32, up 10.5% in the last 24 hours. 

As the SEC case comes to an end and Ripple expands with major partnerships and acquisitions in 2025, it is strengthening its ecosystem and positioning itself as a leader for serving institutional clients worldwide.

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