Stellar Lumens is currently in communications regarding the potential of purchasing the San Francisco-based startup company Chain.
Chain is a platform focused on blockchain development which is hoping to offer banking and financial institutions a way in which they can develop their own individual and private networks. Chain, unlike other companies with a similar aim, is not a blockchain in itself but rather looks to offer the technology to markets in the finance industry.
According to Chain, this is what is setting them apart and the CEO has dismissed the suggestion that cryptocurrency is a trading entity to replace traditional tender. He said:
“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.”
It has not been explicitly stated how Stellar will use Chain’s technology if and once it has been acquired. It has been said by Fortune that Stellar is willing to spend $500 million USD worth of XLM for the purchase. Currently Stellar has a market cap value of $4.3 billion USD so the amount suggested is not far-fetched.
Since it was founded in 2014, Chain has managed to make its mark in the industry; raising over $43 million USD in funding with some leading venture capital business supporting the project, such as Khosla Ventures, RRE Ventures, Capital One, Visa, Citigroup, Nasdaq, and Orange.
Stellar, which is hoping to integrate blockchain technology into financial systems, seems to be aligned with Chain’s vision for the company and this could be an acquisition to create a well-paired partnership.
Currently, Stellar’s XLM is down by 6.67% day-on-day, and presently trades at $0.22 USD.