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.
Introduction: A Dip That Could Signal Big Gains for WBTCUSD Wrapped Bitcoin (WBTCUSD) is making…
: What Investors Need to Know In a surprising turn for the crypto world, the…
And The : The Federal Reserve's latest decision on rate cuts has sent ripples through…
SEC Sets on as Becomes Strategic Priority In a surprising pivot that's sending ripples through…
What Are the ? In the volatile world of cryptocurrency, few signals spark as much…
Why Is ? The crypto market is no stranger to volatility, but today's downturn has…