JPMorgan Mulls Blockchain Unit Merger With Consensys

JPMorgan Mulls Blockchain Unit Merger With Ethereum-Focused Consensys

The US largest bank, JPMorgan Chase, is considering merger of its Quorum blockchain project with ConsenSys, the ethereum-focused developer and investor.

According to a report issued Tuesday by Reuters citing people familiar with the plans, the merger could happen within the next six months, but the parties didn’t reach an agreement on the financial terms as they are currently under discussion.

Based on Ethereum, Quorum is an open source blockchain platform that combines the innovation of the public Ethereum community with enhancements to support enterprise needs.

The platform is designed to allow member banks to exchange information in real time, to verify that payments have been authorized. This was also used as the basis for JPM’s Interbank Information Network, now with more than 365 banks on board.

In May 2019, bank staff indicated that Quorum could be spun off although it was unclear whether that would be the case at the time.

Furthermore, sources added that the Quorum unit currently employs about 25 people worldwide, and it is not yet clear whether they would be part of the ConsenSys team following the merger.

Recent Developments

Last week, Consensys, a blockchain software company, announced its strategic plans which include laying off an additional chunk of its employees while splitting into two different directions.

Consensys cut the workforce by about 14 percent, the company announced in a press release on Tuesday.

Finally, JPMorgan announced last month the launch of crypto startup Kadena’s public blockchain, adding interoperable smart contract support between the public chain and its private chain counterparts.

Last week, Cryptolydian reported that Aztec has launched its privacy network on ethereum, providing what it says a cost-effective solution to keep all users’ transactions private.

The Aztec protocol uses the privacy algorithm Zk-SNARKs to encrypt blockchain data. Its team claims it works more efficiently and at a lower cost than many alternative solutions that already exist.  

It is also planned to be used by banks: during a series of ZKP experiments in February 2018, JPMorgan’s blockchain team tested Aztec.

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Abdulhay Mahmoud 414 Articles
Abdulhay Mahmoud is a creative writer with over 15 years of experience in journalism, translation, and investor relations. He has B.A in English and Literature from a reputable University. He recently became a contributor at Cryptolydian.com to fulfill his thirst in reporting digital coins and blockchain-related news, an interest was built over the years.