Stellar Acquires Chain and Sets Up a New Venture
Targeting the global market, the blockchain-based platform Stellar is one step closer to the achievement of its objectives.
On September 10, the Stellar Development Foundation announced it acquired a blockchain internal ledger maker called Chain. Following the purchase, Lightyear – the marketing subsidiary of the Stellar Foundation that designed the token XLM, and Chain formed a new organization dubbed Interstellar. The rumors were finally validated.
According to Chain’s page on Crunchbase, the startup raised over $ 40 million in funding from the time it was set up in 2014. For roughly four years, it has been working with giants such as Visa, Citigroup, Nasdaq, and the list continues. Chain described itself as building “cryptographic ledger systems that make financial services smarter, more secure, and more connected.”
The partnership between Chain and Stellar was completed on 5th September and announced only on 10th September. The newly formed organization will be led by Adam Ludwin, Chain CEO.
Speaking about the Stellar’s purchase of Chain, Ludwin commented:
“All of the clients that we have now have effectively shifted from using a traditional database model to using a tokens model, issuing assets on a local environment. By partnering with Stellar you can fire an asset to another institution.”
As pointed out by Ludwin, former employees at Chain will continue to work within the newly established venture. Regarding the former Chain’s shareholders, they were also bought by Stellar and will follow the instructions of the new team of managers. The final cost of the acquisition was not disclosed yet- “[it was] significantly more than $ 40 million,” said Ludwin.
“Chain did not need to sell the company. This needed to be a great strategic move and a great return and it was both.”
Following the announcement, Stellar’s token XLM rose today to the maximum of $ 0.194543 (at 11:34 UTC +03:00), currently being traded at $ 0.191631.