It has been recently announced on Monday that the Stellar Development Foundation has purchased the Blockchain startup, Chain in cash. This has resulted in a whole new formation called Interstellar. Despite rumours floating around for months now, the announcement has finally arrived.
Chain’s Crunchbase page has said that the blockchain startup has raised more than $40 million in private capital since it was founded four years ago in 2014. They have worked with companies such as Visa, Citigroup, Nasdaq and more. The startup have described themselves as building “cryptographic ledger systems that make financial services smarter, more secure, and more connected.”
The deal between Chain and Stellar was officially finished on 5th September and was first announced by the Blockchain company on 10th September. The new venture will be fronted by Adam Ludwin (the former RRE Ventures partner and Chain CEO), and is called Interstellar.
When asked about the acquisition of Chain by Stellar, Ludwin said:
“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.”
Ludwin also made note that the new entity will keep all of the current employees at Chain and that most of the employees will stay in the same positions. Previous shareholders in Chain were also bought out by Stellar however, the price of the deal wasn’t revealed but Ludwin said, “[it was] significantly more than $40 million.”
Ludwin also added that Chain took a lot of time before making a final decision on whether to accept.
“Chain did not need to sell the company. This needed to be a great strategic move and a great return and it was both.”
What are your thought on Stellar buying out Chain? How will this affect the two companies? How will this impact the Interstellar project? Let us know down in the comment section!