Lightyear, a subsidiary of the non-profit Stellar Development Foundation, which is aimed at fighting poverty by connecting people to low-cost financial services, has purchased the Visa backed blockchain startup, Chain.
The acquisition will see both Chain and Lightyear no longer operate as independent ventures but will be rebranded together as a company known as Interstellar. The Stellar Development Foundation will continue to operate independently.
Blurring cryptocurrency divisions
The deal is hailed as standing out for being a testament of the “blurring of the once-firm division between private, enterprise blockchain solutions and public blockchains supporting a native cryptocurrency.”
In what is said to be an all-cash deal for an amount that has not been disclosed, Chain’s existing investors, which include Visa, Citi Ventures and Nasdaq, will receive a return on their investment.
Chain’s co-founder Adam Ludwin, who has been appointed as Interstellar’s CEO, spoke of the benefits of the deal, commenting:
“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.”
Jed McCaleb, the founder of Stellar and co-founder of the real-time gross settlement system, currency exchange, and remittance network Ripple, has been appointed as Chief Technical Officer at Interstellar.
Building on the Stellar Network
The purpose of Interstellar is to help organizations build on the Stellar Network. The alliance between Stellar and Chain will mean the Visa-backed blockchain startup InterStellar will add to Stellar’s international public ledger, developing an end-to-end solution, which will enable the issuing, exchanging and managing of assets on what, according to Interstellar, is a “highly-scalable public network.”
Ludwin referred to the acquisition as a “great strategic move”. Enterprise customers who currently use Chain’s blockchain-permissioned software will now function under Interstellar.
Earlier this year Stellar, the poverty-fighting open platform for building financial products to connect people, was cited as number eight in the top cryptocurrencies by market capitalization, standing in March 2018, at $4.1 billion.
Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.