Interstellar, which stands as Lightyear’s latest company, will migrate Chain’s products and customer base onto the Stellar public ledger to create a platform that enables organizations to exchange, manage and issue assets.
In an interview with Reuters, Lightyear chief executive officer Adam Ludwin explained, “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.”
Following the acquisition, the Lightyear and Chain brands have retired respectfully. Ludwin will stand as Interstellar’s new chief executive officer, while the co-founder of the Stellar Development Foundation and Lightyear, Jed McCaleb, assumes the new role of chief technology officer.
Interstellar’s product portfolio will include StellarX, which is the marketplace for trading assets on Stellar. The platform is currently in its beta phase but will launch to the public soon.
Ludwin declined to disclose the financial details of the acquisition but maintained that Chain investors have been fully cashed out.
Negotiations regarding the acquisition began late last year when Chain stood as one of the largest contenders in the blockchain space. The company allowed organizations to build financial services from scratch and raised more than $40 million from companies including Nasdaq, Citi Ventures and Visa.
In an interview with Forbes, Ludwin has maintained that while Chain was unable to bring new customers together without the means of a public network, and Lightyear briefly considered launching a public blockchain, both companies shared “equal and opposite problems” that could be best solved together.
The merge points towards a larger concern regarding the blockchain space, and the manner in which permissioned networks may interoperate with other platforms. The Chain merger demonstrates a possible path forward that deviates from the United States Depository Trust and Clearing Corporations upcoming blockchain platform that is built to interoperate with the public Ethereum blockchain.
In a statement issued to Forbes, McCaleb has stated, “Chain’s team has led the market for enterprise adoption of blockchain technology. Which is a critical component of building a future where money and digital assets move over open protocols.”
Interstellar will employ 60 individuals throughout headquarters in San Francisco and an office in New York City. As for the Stellar blockchain, it recently surpassed 1 million active accounts and XLM is currently ranked 6th in the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens.