JPMorgan said to be in talks to merge its blockchain unit with ConsenSys
Investment banking large JPMorgan is reportedly in discussions to merge its blockchain unit Quorum with Ethereum improvement studio ConsenSys.
Reuters reported the information on Tuesday, citing “people familiar with the plans.” The deal might formally be introduced inside the subsequent six months. Notably, Quorum is an Ethereum-based blockchain community.
A JPMorgan spokesperson declined to present further particulars to The Block. We have additionally reached out to ConsenSys and can replace this story if we hear again.
The funding financial institution has reportedly been contemplating spinning-off Quorum for round two years. The Quorum model, nevertheless, might stay after the merger.
A merger with ConsenSys would additionally don’t have any affect on JPMorgan’s Interbank Information Network (IIN) and different initiatives operating on Quorum, per the report. IIN was launched in 2017 and permits member banks to change info associated to worldwide funds on Quorum. Some of the notable banks on the community embrace Deutsche Bank, Royal Bank of Canada and Australia and New Zealand (ANZ) Banking Group, amongst others.
JPMorgan’s stablecoin-like digital token, JPM Coin, can also be constructed on Quorum and allows prompt cost transfers between institutional accounts.
There are at the moment round 25 folks working for Quorum and it stays unclear whether or not they are going to be a part of ConsenSys after the merger, per the report.
The relationship between JPMorgan and ConsenSys isn’t new. In 2016, each the businesses supported Project Ubin, a collaborative trade challenge in which the Monetary Authority of Singapore, the nation’s central financial institution, and different institutional banks prototyped a real-time gross settlement resolution utilizing Quorum.
Today’s information follows a main restructuring that ConsenSys introduced final week. The agency is dividing its software program improvement and funding companies, and as a part of the transfer, it laid off 14% of its workers.
“Separating the core software business from investment activity means the shape and size of ConsenSys will change,” the agency said on the time. With the adjustments in place, ConsenSys is eyeing a $200 million increase, a supply informed The Block on the time.