ETHEREUM PRIMED FOR TAKEOFF With ConsenSys Acquiring JP Morgan’s Quorum Blockchain & Binance Florida
JPMorgan Negotiates Quorum Blockchain Merger With ConsenSys Startup
Jp morgan chase & Co is in talks to merge its main blockchain unit Quorum with Brooklyn-based startup ConsenSys.
Reuters sources say the deal will be officially announced within the next six months, but financial terms are still unclear..
The Quorum team currently employs about 25 people worldwide and it is unclear if they will join ConsenSys after the merger..
Blockchain emerged over a decade ago as software that tracks cryptocurrency transactions. Since then, banks and other large corporations have invested millions of dollars to develop and test a range of business applications using nascent technology. Efforts have had mixed results, with few projects achieving significant results.
JPMorgan built the Quorum blockchain from the inside out using the ethereum network, the software behind ether, one of the most famous cryptocurrencies.
It is used by JPMorgan to operate the Interbank Information Network, a payment network of over 300 banks. JPMorgan, the largest US bank by assets, also said it will use Quorum to issue a digital currency called JPMorgan Coin, which is designed to make instant payments using the blockchain..
Merger with ConsenSys won’t affect IIN and other JPMorgan projects at Quorum, sources say..
JPMorgan has been considering spinning off Quorum for about two years now, evaluating options including setting up an open source fund, starting a new startup, or merging it with another company..
The merger with ConsenSys was chosen as the best way forward as both organizations work with ethereum and have participated in joint initiatives in the past..
ConsenSys, a renowned blockchain startup that has been booming since 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 about 14% of its employees as it undergoes a restructuring process to separate its software business from its venture capital business..
The merger with Quorum would coincide with the move to expand the software division.
Quorum is open source, which means that its code is free and subject to change and redistribution. According to Reuters sources, after the merger, it is planned to keep the Quorum brand and keep the technology open source..