Stellar, which is currently working with the tech giant IBM and is also the creator of the cryptocurrency Lumens, is purchasing Chain for $500 million (US) The transaction will be paid in Lumens (XLM).
XLM is currently the seventh most valuable cryptocurrency by market cap.
According to Fortune, Chain had previously raised over $43 million (US) in venture funding from investors that included Khosla Ventures, Blockchain Capital, Pantera Capital, Nasdaq and Visa to name a few. The report also states that backers will be receiving payment in the form of the Lumens cryptocurrency, which it says they may sell or hold at their leisure once the transaction is completed.
While the purchase of the company is what’s happening, the purchase is an “acqui-hire. So the conclusion is that Stellar is really buying Chain’s talented employees more so than what Chain offers in regards to technology.
Previously known as Albumatic, Inc., the San Francisco based Chain was founded in 2012 as an enterprise software company. Its purpose is to design and develop cryptographic ledgers to help institutions to design, deploy, and operate financial networks. Chain offers its clients the Chain Open Standard, which is an open source blockchain protocol for high-scale financial applications. It also offers Chain Core, that is an enterprise-grade production node; a prototyping environment and Chain Sandbox.