Stellar to Acquire Blockchain Startup for $500 Million

Jun 22, 2018 at 19:00

Stellar, the creator of the lumens digital currency (XLM) had talks to acquire blockchain startup Chain, for $500 million.

In an article published by Fortune, sources familiar with the brewing deal who requested anonymity said that Stellar will pay $500 million worth of XLM to acquire Chain. It can be recalled that the startup firm recently raised more than $43 million from a variety of financial institutions and tech funds including Capital One, Citigroup, Nasdaq, Visa, Khosla Ventures, Blockchain Capital, and Pantera Capital.

Analysts said that Stellar’s plans for the San Francisco-based Chain which develops enterprise blockchain solutions including Sequence, is still not clear aside from the possibility of utilizing the latter’s technology that allows organizations to transfer balances in token format on private ledgers.

However, Fortune reported that Stellar’s primary interest in Chain is for its pool of talented blockchain developers, which are in high demand but short supply.

At present, Stellar ranks as the world’s seventh-largest cryptocurrency with a market cap of $4,083,369,723.33 billion with $37,773,100 daily trading volume.

Stellar was launched in 2014 with a goal to incorporate micropayments, remittances, mobile money and services for those without bank accounts.

As of this writing XLM is priced at $0.21767 a piece.