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%Ripple, the company behind the XRP (CRYPTO: $XRP ) cryptocurrency, is buying %Stablecoin payments firm Rail for $200 million U.S.

The all-cash deal is expected to close in this year's fourth quarter, according to the companies.

Rail is a Canadian company based in Toronto. Its payments platform is backed by Galaxy Ventures and Accomplice.

The acquisition will help Ripple to push further into the fast-growing stablecoin market after launching its RLUSD stablecoin earlier this year.

The deal comes after it was reported that Ripple had offered to buy stablecoin giant %Circle (NYSE: $CRCL ) for $4 billion U.S. to $5 billion U.S.

Circle rejected that offer and went public this spring in a blockbuster initial public offering (IPO) that has seen its stock rise 50% since its market debut.

"Stablecoins are quickly becoming a cornerstone of modern finance, and with Rail, we are uniquely positioned to drive the next phase of innovation," said Ripple in a news release.

XRP is currently trading at $3.07 U.S., having gained about 1% this year.


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