The San Francisco-based Chain Inc. which receives support from NASDAQ, Visa, Pantera Capita, and Citi Ventures has been acquired by Stellar Lumens (XLM). This acquisition was perfected by Lightyear which is a commercial subsidiary of Stellar Development Foundation.
Established in 2014, Chain has recorded as much as $44 million support in funding from many financial powerhouses such as Citi Ventures, Visa, NASDAQ, and others. The chain is a fintech startup and it specializes in building personal blockchain for those companies that want to streamline and digitalize their assets.
On the other hand, Stellar’s blockchain protocol helps in cross-border payments and exchange in digital assets. It also creates smart contracts as well as decentralized apps. For all these, Stellar utilizes the Lumens platform as its native cryptocurrency
Just like Chain, Stellar was also established in 2014 by Ripple co-founder Jed McCaleb. The cross-border payment platform is utilized by the likes of IBM, Kik, and Deloitte. In all these, the overall market value of Stellar stands at $4.3 billion.
Lightyear Sets To Become Interstellar
Based on the release from the mother company Stellar, Lightyear which acquired Chain is to be renamed Interstellar. In the new plan, about 30 workers of Chain are to be retained making the total number of Interstellar to be 60. Similarly, Chain’s CEO Adam Ludwin is to serve as Interstellar CEO too while McCaleb would be the CTO.
Interstellar will continue to serve the existing customers of Chain but will now be making use of a model based on the token to give out assets. It would basically be preoccupied with assisting companies in building infrastructures on the Stellar network.
While granting an interview to Yahoo, Ludwin who is the CEO of Interstellar explains the reason he thinks tokens would soon be a force to reckon with. While arguing that Stellar is at the forefront in this regard, he said:
Tokenization is the biggest unrealized opportunity around crypto. We are setting out to tokenize all the things, and to move from scammy ICOs that we wouldn’t want to be associated with to finding partners to create tokens uniquely enabled by Stellar and which can be an important part of their business model. So it won’t be just about legacy products with financial institutions, it’ll also be about companies creating and enabling totally new assets where you can kind of squint and it might look similar to some other things, like a reward ticket or loyalty point or an API token or an in-game currency or a digital good, but they are all fundamentally being reinvented in this era of crypto.
However, Ludwin reveals that this new deal has been conceptualized long before now. He said that the plans began very early in January and efforts were put in place to ensure the information is not leaked. Notwithstanding, Ludwin admitted some information got to the public about the plan while people were also misinformed about it too.
It has reported that Chain was probably sold to Stellar (XLM) at a sum of $500 million.