Stellar Lumens (XLM) plans to acquire $500 million Blockchain Project
Stellar Lumens (XLM) might possibly acquire San Francisco-based start-up, Chain. The cryptocurrency company is currently discussing the possibility of a take-over with Chain. The Blockchain start-up develops cryptographic ledgers for the finance industry. Stellar was recently in the news after the crypto coin was added onto Bitcoin IRA platform.
Stellar currently stands at rank 7 in the cryptocurrency market. It seems this 7th largest digital currency is willing to shell out XLM worth $500 million to buy the company. While it seems an astronomical sum, it seems a manageable amount for Stellar which has a market cap of $4.3 billion. But, according to Fortune, it’s unclear as of now on how the crypto company plans to utilize this technology.
All about Chain
Chain is a Blockchain development platform. The platform will help financial institutions and banks to create their own private networks. So it’s unlike other organizations which are trying to create and market Blockchains to these institutions to enable better transactions. The Blockchain company was founded in 2014 and has received funding from several big names in venture capital.
The Blockchain start-up acknowledges the distinction between them and others as crucial. The CEO Adam Ludwin is dismissive of the notion that cryptocurrencies like Bitcoin are touted to be opponents of traditional finance often. He says,
“People want to believe that there’s going to be this mythical coin that comes out of Silicon Valley that the world starts using and that all of Wall Street just falls into the ocean.”
Similar goals as Stellar
The company aims to persuade industry giants that they’re buying into the infrastructure necessary for surviving in a decentralizing and digitizing world. This particular strategy of theirs seems to be working too. Especially after Nasdaq’s announcement which said they’re partnering with Chain. According to the announcement, they will develop a distributed ledger-based payment system with financial services giant Citi, using Chain’s Technology. Nasdaq, the world’s 2nd largest stock exchange openly recognized Blockchain’s advantages in their announcement.
“Emerging technologies like Distributed Ledger Technology (“DLT”) are driving digitization and enabling new platforms and blockchain ecosystems that can provide real-time digital solutions.”
Stellar, like Chain, aims to integrate Blockchain Technology with the existing financial systems. It definitely bodes well for the future with both the companies sharing the similar goals. XLM is currently trading at $0.23 and the digital currency has seen a drop of 1.83% in the past 24 hours.
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