San Francisco-based tech company Chain Inc was bought by Stellar-backed Lightyear Corp, Chain CEO Adam Ludwin announced on Monday. According to Reuters, both companies will go through a rebranding process, and the new company will be known as Interstellar. It will move Chain’s client base and products to Stellar’s blockchain network, developing a platform that will allow entities to issue, exchange and manage digital assets, Ludwin said.
“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,” he added.
“When we started a few years ago, our customers were not ready for a public network. Fast forward to three years, they’re willingness has gone up, and the maturity of the public networks has changed a lot,” the CEO noted.
Ludwin didn’t want to reveal more details about the deal, but stated that Chain investors had been cashed out. The negotiations for the acquisition, which was completed last week, started in 2017. In June, we reported that Stellar was ready to buy Chain for $500 million in XLM tokens, though the financial details might have changed since then. Nonetheless, Ludwin said that the deal had been a very good outcome for investors.
Chain is a blockchain-oriented tech startup founded in 2014. The company was funded by VC firms like Khosla Ventures and RRE Ventures and has partnered with giants like Citigroup, Nasdaq, Visa, and Capital One.
According to the deal, the Chain and Lightyear brands will be quit. Ludwin will be named the CEO of Interstellar, and Jed McCaleb, who co-founded Stellar Development Foundation and Lightyear, will become the new company’s CTO.
Interstellar will hire 60 people in its San Francisco and New York offices. Its product portfolio will include StellarX among others. The latter is an upcoming marketplace for trading Stellar-based assets.