Stellar (XLM) the Latest Cryptocurrency Added to Grayscale
Grayscale, a cryptocurrency investment group, has just announced that it has launched its latest fund. This new fund is dedicated specifically to Stellar (XLM).
1/ We are excited to announce two big developments! First, today marks the launch of Grayscale Stellar Lumens Trust! Investors can now gain exposure to the price movement of XLM through a traditional investment vehicle. For more info go to https://t.co/izJooCsKwS
— Grayscale (@GrayscaleInvest) January 17, 2019
Grayscale is a digital asset management firm that operates under the Digital Currency Group umbrella. Before the addition of Stellar, Grayscale held eight other digital currency trusts.
The trusts now include:
“We are pleased to bring Grayscale Stellar Lumens Trust to market and will continue to provide investors access to established blockchain projects with substantial traction and resources,” said Michael Sonnenshein, Managing Director of Grayscale. “Grayscale has established a leadership role in this emerging industry and the launch of this product will expand our coverage of the digital asset universe.”
The Grayscale Stellar Lumens Trust is now the first single-asset investment product that provides investors with exposure to Stellar (XLM). Stellar Lumens, or XLM, is the native digital asset of the Stellar Network.
Sonnenshein spoke to Fortune about his views on the Stellar Network. The Director of Grayscale believes that Stellar is in a good position to be used in the world and believes the theory behind the project is sound. Specifically, Sonnenshein believes that the working capital aspect of the Stellar Lumens network is what will make it more appealing to banks.
The current banking system requires each major bank to hold large reserves of currencies in foreign banks, but being able to bring those balances of foreign currencies into working capital is what the Grayscale Director finds to be extremely valuable.
Currently, Grayscale also holds XRP, which is Stellar’s competitor. However, Ripple’s network is geared more towards banks, while Stellar (XLM) hopes its project will be used for just about anyone. Specifically, smaller businesses.
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