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Despite Crypto Winter, Grayscale Investment Still Holds Trust In Stellar

Grayscale Investments recently announced that they are preparing to provide a fund which will enable professional investors to grab exposure to Stellar along with other digital currency- Lumens.

Grayscale is the firm behind Bitcoin Investment Trust, and Stellar is the brainchild of Jed McCaleb currently being a sixth most worthy cryptocurrency. Today, everyone knows about Jed McCaleb, He is an iconic personality in the crypto world, the founder of Ripple. Moreover, the project is recently gains momentum from the Stripe Fintech giant. And decides to make its Lumens currency core part of real-world banking operations.

The decision by Grayscale to establish a Stellar dedicated fund will likely give a boost to this currency. Its subsidiary of Digital Currency Group, crypto behemoth. Grayscale considers this newly developed Stellar Lumens Trust as its ninth-single asset product. While, others consider it as flagship Bitcoin product and funds for Ripple XRP, Ethereum, Zen, etc.

The director Michael Sonnenschein cites Grayscale to design the new product on investor demand. Also adds that he personally considers himself bullish for the real-world use case of Stellar.  As it acts as a bridge currency for various transnational money corridors.

I think the theory is a sound one. An American bank may be keeping large amounts of currencies in foreign banks, and to be able to bring those balances of foreign currencies onto a balance sheet as working capital is valuable. Financial institutions won’t be required to hold balances all over the place. This will improve efficiency and shore up balance sheets for other uses.

The idea to utilize digital currencies to free up capital packed in foreign currency accounts is not shocking for Stellar. Ripple Company is trying to push this idea, promoting banks to utilize its product- XRapid which now performs a cross-border transaction with the help of XRP.

Currently, the use of XRP and Stellar Lumens for financial institutions acts as a bridge currency which is still in a trial stage. However, some of them hope this currency will retrieve traction. Meanwhile, Sonnenschein believes that new Stellar fund launch might evidence reports behind the slump in crypto markets.

He mentions that net investment within Grayscale is rising continually. Moreover, he credits this growth of crypto to professional investors, along with the accessibility of crypto products operating with core regulatory safeguards.

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Despite Crypto Winter, Grayscale Investment Still Holds Trust In Stellar
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Despite Crypto Winter, Grayscale Investment Still Holds Trust In Stellar
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Grayscale Investments recently announced that they are preparing to provide a fund which will enable professional investors to grab exposure to Stellar.
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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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