Rail
Rail (Layer2 Financial Inc.) provides B2B stablecoin payment infrastructure for cross-border settlement, processing ~10% of global B2B stablecoin volume. Acquired by Ripple in Q4 2025 for $200 million, it now operates as a Ripple subsidiary serving banks and fintechs.
- Company typePrivate
- Founded2023
- HeadquartersToronto, Canada
- Headcount101–250
- GTM typeB2B
- OfferingSoftware
What Rail does
Rail (operating under legal entity Layer2 Financial Inc.) provides B2B stablecoin payment infrastructure for cross-border settlement, built around three core product surfaces: a Payment Services API for initiating and processing multi-currency and digital-asset transactions, Account Services for custodial fund management, and Virtual Accounts that let institutions hold and manage fiat and digital asset balances side by side. The platform's architecture layers automated back-office reconciliation and compliance verification on top of blockchain-based settlement, targeting banks, fintechs, and other regulated financial institutions that face high correspondent banking costs, prefunding requirements, and slow cross-border settlement.
Rail monetizes through transaction fees on stablecoin payment processing and processes approximately 10% of global B2B stablecoin payment volume. Go-to-market is enterprise field sales into regulated financial institutions, with the platform distributed via direct APIs and, since the Q4 2025 acquisition by Ripple for $200 million, embedded inside Ripple Payments which serves 60+ markets under 75+ regulatory licenses.
The company maintains a multi-jurisdictional compliance footprint — money transmitter licensing across ~35 US states, FINTRAC registration in Canada, and a Lithuania virtual currency exchange license — with offices in Toronto and Miami. Named institutional adopters include AMINA Bank, Corpay, Banco Genial, AltPayNet, and Flash Payments, illustrating the horizontal segmentation across banks and fintechs.
Rail firmographics
Firmographics- Name
- Rail
- Legal name
- Layer2 Financial Inc.
- Website
- https://rail.io
- Company type
- Private
- Founded year
- 2023
- Operating status
- Acquired
- Headcount range
- 101–250 employees
- Short description
- Rail (Layer2 Financial Inc.) provides B2B stablecoin payment infrastructure for cross-border settlement, processing ~10% of global B2B stablecoin volume. Acquired by Ripple in Q4 2025 for $200 million, it now operates as a Ripple subsidiary serving banks and fintechs.
- Ownership category
- akta.pro rank
Rail industry classification
Industry- Product category
- Stablecoin Payment Infrastructure
- NAICS
- Financial Transactions Processing, Reserve, and Clearinghouse Activities (522320), Financial Transactions Processing, Reserve, and Clearinghouse Activities (52232)
- SIC
- Finance Services (6199)
- akta.pro primary industry
- Crypto Payments & Stablecoin Settlement Platforms (BPAMAFAL)
- akta.pro secondary industries
- Stablecoin Payment Rails & Settlement Networks (Issuer-Led) (FSADADAF), Enterprise Payments & Tokenized Money (stablecoins, tokenized deposits, CBDC rails) (FSAPAIAJ)
Keywords
Where Rail is headquartered
LocationHeadquarters
- HQ city
- Toronto
- HQ country
- Canada
- HQ region
- North America
Offices2 records
Markets served
Rail business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Personnel, Technology or R&D, Operations, Marketing or Sales
Revenue model
- Stablecoin Payment Processing: Rail generates revenue through transaction fees charged on B2B stablecoin payment processing. The platform processes approximately 10% of global B2B stablecoin payment volume, providing a transaction-based revenue stream from financial institutions using its payment rails.
Go-to-market motion1 record
Distribution channels1 record
Marketing channels3 records
Rail product offering
Product offeringCore offering
Rail provides B2B stablecoin payment infrastructure that enables financial institutions to initiate, process, and settle cross-border transactions in real time using digital assets. The platform offers virtual account capabilities for managing fiat and digital asset balances alongside automated back-office processing for reconciliation and compliance. Rail's infrastructure processes approximately 10% of global B2B stablecoin payment volume and serves regulated banks and fintechs across more than 60 international markets.
Product overview
Rail operates as a stablecoin-powered global payments infrastructure platform (formerly known as Layer2 Financial Inc.), now integrated into Ripple's suite of financial solutions. The platform provides B2B stablecoin payment services including virtual accounts, automated back-office systems, and multi-currency transaction processing. Rail processes approximately 10% of global B2B stablecoin payment volume and supports cross-border transactions across 60+ markets. The product architecture consists of Payment Services for transaction initiation and processing, Account Services for fund custody and management, and virtual account infrastructure for institutional clients. The platform enables real-time stablecoin settlement and supports both fiat and digital asset transactions within a single unified system.
Differentiator
Problem solved
Functional benefit
Products and services
- Rail Platform A B2B stablecoin payment infrastructure platform enabling global cross-border payments through virtual accounts, automated back-office systems, and stablecoin transaction processing for financial institutions.
- Payment Services Payment processing services enabling financial institutions to initiate, process, and manage cross-border payment transactions in multiple currencies and digital assets with automated settlement capabilities.
- Account Services Digital asset account management services providing customers with custodial accounts, fund management, and integration with designated financial institutions for holding and managing customer funds.
Companies that use Rail
Customer profileNamed customers5 records
Segments2 records
Ideal customer profiles1 record
Rail technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
Rail partnerships and signals
Strategic signalPartnerships
One partnership is on record.
- RipplecoreRipple acquired Rail in Q4 2025 for $200 million, integrating Rail's stablecoin payment infrastructure into Ripple's enterprise payments platform. The acquisition strengthens Ripple's position in B2B stablecoin payments, adding Rail's virtual accounts and automated back-office capabilities to Ripple's suite of financial infrastructure solutions spanning 60+ markets and 75+ regulatory licenses.
Scale indicators3 records
Recent moves6 records
Expansion highlights6 records
Rail competitors and assessment
Company assessmentBroad incumbents
- Stripe (Bridge): Stripe acquired Bridge, a stablecoin orchestration platform, to embed stablecoin-native B2B rails into its global payments stack — competing with Rail for cross-border stablecoin volume from enterprise and platform customers.
- Tether: As issuer of USDT (the largest stablecoin), Tether is a broad incumbent whose underlying liquidity supports much of the global B2B stablecoin volume Rail routes — a powerful adjacent competitor and liquidity partner.
Direct peers
- Paxos: Paxos issues regulated stablecoins (USDP, PYUSD) and runs B2B payment and settlement infrastructure for enterprises and fintechs, overlapping directly with Rail's offering.
- Circle: Circle (USDC issuer) operates its own payment APIs and cross-border settlement products, making it a direct competitor in B2B stablecoin payments with the added leverage of being a major stablecoin issuer.
- BVNK: BVNK is a direct competitor offering B2B stablecoin payment infrastructure for businesses and payment service providers, focused on cross-border settlement and treasury workflows — the same core use case Rail targets.
- Zero Hash: Zero Hash offers embedded crypto and stablecoin infrastructure (including B2B payments, wallets, and on/off-ramps) to fintechs and banks, directly competing for the same institutional clients Rail serves.
- BitGo: BitGo provides institutional digital asset custody and settlement infrastructure including stablecoin transfer services, making it a comparable B2B stablecoin rails provider for banks and large enterprises.
- Fireblocks: Fireblocks provides digital asset custody, transfer, and payment infrastructure used by financial institutions to move stablecoins across borders — a direct functional peer to Rail's institutional payment rails.
Emerging players
- Alchemy Pay: Alchemy Pay offers fiat-to-crypto ramps and B2B payment solutions with stablecoin settlement, intersecting with Rail's business in cross-border and merchant payment flows.
- MoonPay: MoonPay provides crypto on/off-ramps and stablecoin payment APIs increasingly used by enterprises for B2B flows, partially overlapping with Rail's cross-border settlement focus.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks7 records
Key highlights7 records
Customer concentration
Rail social profiles
Digital presenceRail compliance and trust
Trust signalCompliance5 records
Rail financial estimates
Financial estimateRevenue estimate
Valuation estimate
Rail leadership team
Management profileNumber of profiles
Rail funding detail
Funding detailFunding overview
Funding rounds1 record
Investors6 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Rail M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Rail
What does Rail do?
Rail provides B2B stablecoin payment infrastructure that enables financial institutions to initiate, process, and settle cross-border transactions in real time using digital assets. The platform offers virtual account capabilities for managing fiat and digital asset balances alongside automated back-office processing for reconciliation and compliance. Rail's infrastructure processes approximately 10% of global B2B stablecoin payment volume and serves regulated banks and fintechs across more than 60 international markets.
Is Rail a public or private company?
Rail is a private company. It is classified as corporate owned and is currently acquired.
When was Rail founded?
Rail was founded in 2023. It employs 101 to 250 people.
Where is Rail based?
Rail is headquartered in Toronto, Canada, in the North America region.
How does Rail make money?
One revenue line is on record: stablecoin Payment Processing.
Who are Rail's main competitors?
Broad incumbents on record are Stripe (Bridge) and Tether. Direct peers are Paxos, Circle, BVNK, Zero Hash, BitGo and Fireblocks. Emerging players are Alchemy Pay and MoonPay.
Does Rail have an API?
Yes. Rail provides payment and account services via its Platform technology. The platform offers Payment Services and Account Services through Layer2 Financial Inc., including Payment Transaction Requests, foreign exchange conversion, disbursement options, and custody account management. API capabilities include digital asset handling, cross-border payment processing, and virtual account management for institutional clients.
What industry is Rail in?
Rail's product category is Stablecoin Payment Infrastructure. Its primary akta.pro industry code is BPAMAFAL, Crypto Payments & Stablecoin Settlement Platforms, with a secondary code of FSADADAF, Stablecoin Payment Rails & Settlement Networks (Issuer-Led). Its NAICS code is 522320 and its SIC code is 6199.