U.S.-based investment banking giant JPMorgan Chase is likely to announce that its blockchain unit Quorum is merging with major blockchain company ConsenSys.
February 11, 2020 | AtoZ Markets – The blockchain world is growing rapidly. This sphere may soon see a significant merger with the traditional financial sector. JPMorgan Chase is supposedly considering merging its in-house blockchain unit Quorum with ConsenSys, a major Ethereum-focused firm.
According to a February 11 Reuters report, the deal is likely to be completed within the next six months if all goes to plan, although the financial terms are not clear.
Ethereum ties are beneficial
Quorum is JPMorgan’s private blockchain platform. Quorum is embedded in Ethereum, the mother of the famous crypto-asset ETH. JPMorgan’s Interbank Information Network (IIN) runs on Quorum. The platform has grown to consist of a network of about 320 banks that share global payments data over the blockchain.
Additionally, it is planned as the basis for JPM Coin, JPMorgan’s forthcoming settlement-focused digital currency. JPM Coin was first unveiled in mid-February 2019. A source reportedly told Reuters that the merger will not negatively impact the IIN and other projects that JPMorgan is running on Quorum.
The bank has allegedly contemplated on several Quorum options in the last two years. Some of the most notable options include creating a new startup, establishing a dedicated open-source foundation, and pursuing a merger.
Consensys was chosen as the most viable route since it has close relations with the Ethereum protocol.
Will the Quorum unit be part of the Consensys team?
In May 2019, the staff of JPMorgan Chase suggested the Quorum project may be abandoned. However, the rumors weren’t confirmed and instead soon forgotten. Reports state that it has roughly 25 employees deployed globally currently working on its development.
Moreover, regarding the merger, it’s not yet clear if these employees are going to join the ConsenSys team or not after the partnership will begin. Just last week, ConsenSys announced 14% of its staff would be cut to thin out the company. Potentially eyeing a $200 million raise. At the moment, neither JPMorgan nor ConsenSys has made any public comments on the matter.
Think we missed something? Let us know in the comments section below.