Wall Street Journal reported that Chain Inc. Is merging with another cryptocurrency start-up. Lightyear Corp, which is a spinoff of the Stellar Foundation will be acquiring the Chain Inc., and the two companies will merge to form Interstellar.
Acquisition of Chain Inc
The report states that the acquisition of Chain Inc. is a sign that its ongoing project with Nasdaq Inc. is not going smoothly. The two are working on building a blockchain-based trading platform.
In addition, the report revealed that Chain’s CEO Adam Ludwin will be Interstellar’s new CEO. And the co-founder of the Stellar Foundation Jed McCaleb will be its Chief Technology Officer.
Ludwin stated that Chain Inc. is worth about $124 million. The startup made about $43 million from its fundraising round. Investors in the start-up include Khosla Ventures, Nasdaq, Visa Inc., and RRE Ventures.
Further, Ludwin added that the investors will be getting a cashout deal that will likely be a multiple of their initial investment.
Partnership between Chain and Nasdaq
The partnership between Chain and Nasdaq launched trading platform for private companies dubbed Linq.
However, the project has not lived up to its potential. Ludwin explained that Chain’s customers were not ready to run their own blockchain networks. He revealed that private companies preferred blockchain platforms that would not need their inputs for running.
As a result, Interstellar will be specializing in services that will be tailored to the specification of financial services.
Wall Street and Blockchain
Like all major industries, Wall Street has been trying to incorporate the blockchain technology into various applications. Startups like Chain, R3, and Hperledger are some of the company that has partnered with Wall Street firms. The firms include JPMorgan Chase & Co., Citigroup Inc., Nasdaq, IBM Corp, and Microsoft Corp. Unfortunately, none of this partnerships have yielded a mainstream and commercial product.
Nevertheless, the introduction of key players of the crypto industry like Jed McCaleb is a good sign. McCaleb was the founder of the now-defunct Mt.Gox exchange. He is also the co-founder of the Ripple, however, he parted ways with Ripples because of a clash of ideas.