One of the largest Crypto asset management funds Grayscale has launched a dedicated investment vehicle for Stellar Lumens (XLM) called Grayscale Stellar Lumens Trust.
Grayscale which is a subsidiary of Digital Currency Group (DCG) announced its ninth single asset product on Thursday. Other products include its flagship Bitcoin (BTC) fund, Ethereum (ETH), Litecoin (LTC) and others including Stellar’s rival XRP.
The asset management firm defined Stellar in a press release as follows:
Stellar is a platform that connects financial institutions, payment systems, and people around the world. The platform is designed to provide low-cost financial services to fight poverty and income inequality and foster individual growth. Lumens is the native asset of the Stellar network that enables users to move money around the world and conduct transactions between different currencies quickly and securely.
A dedicated product for stellar allows institutional investors to invest directly into the token. The firm has launched the product in response to the demand among investors despite the slump in Cryptocurrency prices.
Michael Sonnenshein, Managing director at Grayscale told Fortune:
“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,” he said. “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.”
Many leading companies such as Ripple and Stellar are trying to use Blockchain to solve the global remittance problem. Ripple was co-founded by the creator of Stellar Jed McCaleb who then moved on to create his own project which is a nonprofit organization, unlike Ripple. While Ripple has targeted banks and has partnered with over 200 banks across the world Stellar is focusing on the user side and has partnered with IBM.
Image Source: Flickr
Also Read:
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…
As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…
Did you know that 85% of DeFi value is concentrated in six blockchains? DeFi is…
CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…
Join us at BFC 2024 to explore the future of Web3. Use a special discount…
Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…