JPMorgan and ConsenSys in merger talks over Quorum blockchain unit

by Blocks99

7 months ago

According to people familiar with the plans, JPMorgan and ConsenSys are negotiating over a merger of the blockchain unit Quorum with Brooklyn-based startup ConsenSys.

A merger agreement between JPMorgan and ConsenSys would be aligned with both companies’ current strategies, sources say. JPMorgan built the Quorum blockchain internally using the Ethereum network. It is used to run the Interbank Information Network, a payments network that involves more than 300 banks. JPMorgan, the largest US bank by assets, also said it would use Quorum to issue a digital currency called JPMorgan Coin that it designed to make instantaneous payments using blockchain. Around 25 people currently work on the Quorum team globally.

Internal sources say merger with ConsenSys would have no impact on the IIN and other JPMorgan projects running on Quorum. JPMorgan has been considering spinning off Quorum for around two years. Both ConsenSys and Quorum work with Ethereum and have been involved in joint initiatives in the past.

Strategic alignment

ConsenSys, a prominent blockchain startup that grew rapidly during the 2017 crypto bubble, was founded by Joe Lubin, one of the co-founders of Ethereum. The company announced last week that it had laid off around 14% of its staff, as it undergoes a restructuring to separate its software development business from its venture activities. A merger with Quorum would align with its shift toward growing its software division.

(Source: Reuters)

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