Grayscale Makes Stellar Newest Crypto Investment Trust

| Publish date: 01/19/2019
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Grayscale Investments, which is the firm behind the Bitcoin Investment Fund, has recently announced its plan to offer a fund to let professional investors obtain exposure to Stellar. Also, the move is set to help the company put forward its very own digital currency called Lumens.

Boosting Its Crypto Lumens

Stellar is deemed to be the world’s most valuable cryptocurrency and is Jed McCaleb’s brainchild. McCaleb is a well-known figure in the digital currency world and is the man behind the foundation of Ripple, as well as the influential early exchange Mt. Gox.

The project is not only acquiring early backing from fintech giant called Stripe, but it is also paving a path for Lumens to take part in the real world banking transactions.

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Grayscale is basically hoping to come up with a dedicated fund meant specifically for Stellar. Interestingly, it is expected to give the digital currency a boost, especially since the company offers a roster of well-to-do clients. This includes, but not limited to, family offices and hedge funds. It should be noted that the company is also a subsidiary of cryptocurrency giant Digital Currency Group.

Stellar Lumens Trust, which has just been launched, is the firm’s ninth-single asset product. Others include its very own flagship Bitcoin product, including funds meant for the likes Ethereum, XRP, and more niche digital currencies like Zen.

Real-World Utilization Case

As far as Michael Sonnenshein, the managing director, is concerned, Grayscale is the one that created the product in response to its investor demand. He even went to suggest that he himself is bullish on Stellar’s real-world utilization case, which is simply to act as a bridge currency in terms of transnational money corridors.

Sonnenshein added that the theory can be deemed “a sound one.” He said that an American bank will always be capable of keeping large sums of currencies, most of which are in foreign banks. In order to bring all of them straight onto a balance sheet, they must be converted to working capital to be valuable.

To put it simply, there is this idea of using digital currencies in freeing up capital sealed in foreign currency accounts. Apparently, this is not something that is unique to Stellar. That is because Ripple has also been vocal about its goal to push the same idea, which would encourage banks to utilize a product that is called XRapid. And by doing so, it will possible to process a cross-border transaction using the crypto XRP.

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