In June, rumours about the possible acquisition of fintech start-up Chain, valued at $500 million, by Lightyear began to surface. The speculation surrounding the deal sent waves through crypto communities due to Chain’s backers: Visa, Capital One, Citi, and Nasdaq among other high profile institutions. After a flurry of articles and blog posts by the media, radio silence about the deal ensued.
Fast forward to September 10th, and Lightyear, Stellar’s for-profit investment arm, suddenly announced it had acquired and merged with Chain. Together, they’ll be known as Interstellar, marking a crucial moment in Stellar’s march toward business adoption using Chain’s expertise in enterprise-ready solutions.
Terms of the deal haven’t been disclosed. What is known, however, are leadership roles in the new venture. Jed McCaleb (co-founder of Stellar and founder of Ripple) will act as CTO. Adam Ludwin (CEO of Chain) will continue as Interstellar’s CEO. Additionally, Chain’s 60 employees will all remain in the pivot to Interstellar.
Chain Building Highly Regarded B2B Payment Solutions
The San-Francisco start-up Chain was founded in 2014 and was quickly courted by major financial market makers. Visa, Nasdaq, Capital One, Orange and more funded Chain with over $30 million to help build, deploy and operate private blockchain solutions. By 2016, Chain and Visa introduced a B2B payment solution based on Chain technology known as Chain Core.
Stellar and Chain Have Plenty in Common
In a statement regarding the partnership, Adam Ludwin said. “Chain has admired Stellar for years, and from day one we’ve shared their goal of enabling financial assets to move seamlessly over the internet. Chain has worked from inside the enterprise while Stellar has focused on the network between organizations. As a single team we will have a complete view and set of capabilities to make value-over-IP a reality.”
Stellar’s founder Jed McCaleb shared his enthusiasm, stating, “Chain’s team has led the market for enterprise adoption of blockchain technology, which is a critical component of building a future where money and digital assets move over open protocols. We are thrilled to be joining forces to help organizations build on Stellar.”
Stellar Aiming Beyond the Moon, Looks to the Stars
How all of the pieces in Stellar’s puzzle will fit is anyone’s guess is a question best laid to McCaleb himself. However, with serious acquisitions and blockchain-leading tech, it’s no wonder that Stellar Lumens (XLM) has performed impressively this year despite the ongoing bear market.
Here’s a quick rundown of some of Stellar’s essential services:
Stellar X: A heavily anticipated peer-to-peer digital marketplace running on the Stellar Network that allows for the tokenization of virtually any asset class.
Kelp: A free, open-source, customizable trading bot for the Stellar marketplace.
Sequence: A cloud-based blockchain infrastructure that lets organizations build financial services.
Starlight: Lightning Network on Stellar. Initially built for Bitcoin, Stellar will implement Lightning Network to become the world’s leading digital payment highway for at-scale transactions.