San Francisco-based blockchain startup Lightyear, the for-profit subsidiary of the Stellar Development Foundation, has purchased venture-backed Chain in a deal worth well over $40 million in cash.
The acquisition means both Lightyear and Chain are to be merged and rebranded as Interstellar, which will employ 60 people with headquarters in San Francisco and offices in New York City.
Chain Co-Founder Adam Ludwin says the buyout was for “significantly more than $40 million”. Sources close to the deal say the sale was in the area of $200 million. The likes of Visa, Nasdaq and Citi Ventures invested in the firm. Ludwin claims the venture “has had millions in revenue and millions of dollars in the bank”.
“Chain did not need to sell the company,” he states. “This needed to be a great strategic move and a great return, and it was both.”
Interstellar gets Chain’s clients and products
Interstellar will migrate Chain’s client base and products onto Stellar’s global blockchain to create a platform that will enable organisations to issue, exchange and manage assets.
“We were looking for a way to help our customers move the projects that we have been working on from a private network to a public one,” Ludwin explains.
“When we started a few years ago, our customers were not ready for a public network. Fast forward to three years, their willingness has gone up, and the maturity of the public networks has changed a lot,” he adds.
Chain and Stellar
Chain is one of the largest blockchain startups with clients in the financial services sector. Stellar is an open network that allows any currency or asset to be digitally issued, sent, received and exchanged online.
“Chain’s team has led the market for enterprise adoption of blockchain technology. This is a critical component of building a future where money and digital assets move over open protocols,” says Jed McCaleb, Co-founder of Stellar Development Foundation and Lightyear.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.