Stellar Lumens is reportedly in a process of acquiring a San Francisco-based start-up called Chain. According to the source, Stellar leaders are now considering the possibility of a take-over with Chain, which is a promising blockchain start-up that develops cryptographic ledgers for financial industry.
Stellar, which currently the top 7th in the cryptocurrency market, is reportedly willing to shell out XLM worth $500 million to buy Chain. While the sum can seem to be greatly measurable, the company with total market cap of $4.3 billion can be able to afford it. Meanwhile, according to the official source of Fortune, it is still unclear and not officially announced how the crypto company plans to utilize this technology.
Chain is a blockchain-technology based development platform which aims at helping financial institutions and banks to create their own private networks. The company was founded back in 2014 and has received funding from several big venture capitals already.
According to the CEO of Chain, Adam Ludwin cryptocurrencies such as Bitcoin, are often touted to be opponents of traditional finance. “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”, said Ludwin.
Earlier, Nasdaq which is the world’s 2nd largest stock exchange announced about the platform officially partnering with Chain. The announcement stated that the companies together would be working on developing a distributed ledger-based payment system with financial services giant Citi via using Chain’s technology.
Meanwhile Stellar seem to have similar objectives as Chain, which is to integrate Blockchain Technology with the existing financial systems. Naturally sharing similar goals is a key working point for the future of the companies as they are going to be working as one soon.