JP Morgan, the renowned financial institution, leads to a report that talks about the merger of Quorum, its internal Blockchain Department, with ConsenSys.
In an exclusive report by Reuters, the news editorial staff reported that the Blockchain “Quorum” of the banking giants JPMorgan and the Ethereum development Studio ConsenSys “to discuss, according to people with plans familiar”, about a merger. The report says that the Deal between JPMorgan and the Ethereum co-founder Joseph Lubin, established Tech companies will be announced in the next six months. The financial terms of such Deals, however, remain unclear.
The Quorum is supposed to be an “Open-Source Blockchain platform” on the Ethereum platform, built for enterprise use. JPMorgan currently employs a Team of approximately 25 employees in its Quorum-Blockchain-unit. Quorum is not based only on the Ethereum block Chain, but also JPMorgans JPM Coin runs as a Stablecoin Quorum and allows for instant payments between institutional accounts. The report added:
A merger with ConsenSys was chosen as the best way forward, as both organizations were working together with Ethereum, and in the past joint initiatives involved.
The Fusion of ConsenSys with a Quorum, would the Latter allow for a “shift to the growth of its Software division,” he added. In may 2019 JP Morgan with Microsoft had done to Azure, in order to give Quorum a power boost. Through the partnership, the Teams were given “access to Tools to Write and Test the Blockchain Code”, which is managed via the Azure Cloud. It is interesting to note here, however, that a Quorum will be the platform on which JP Morgan his digital coin, JPM’s Coin will be spend.
JP Morgan had announced in February 2019, the JPM Coin for the resolution of “internal transactions” between the customers of the Bank in the framework of large-value payments would be used. These Blockchain-centric development aimed to facilitate the multi-billion dollar settlement processes of the Bank for cross-border transactions. Umar Farooq, JP Morgans head of the Blockchain projects, was quoted with the words:
“The [Blockchain-]applications are frankly endless; everyone who has a distributed Ledger, are involved in the companies or institutions that can use it.
Quorum is also used for the operation of JP Morgan’s Interbank information network [IIN], a Peer-to-Peer, Blockchain-based Bank network, which allows the “exchange of information in real time”. While the report noted that there “will be no impact” on the IIN, and “other JPMorgan-projects” of the Quorum, could be the message, at least from a purely financial point of view, a type of extremely large thrust.
According to the report, is, however, still unclear whether the Quorum Team will change after the merger to ConsenSys. In addition, it is unlikely that a form will be given eller Deal, as soon as the talks are still ongoing. The financial Details have yet to be confirmed.
Trend of the traditional financial of mergers with Fintech Startups
This step would mark a further change in a constantly changing horizon, in the more established financial institutions popping up, or with agile Fintech start-UPS will merge. Just last month, has declared that the Visa is ready to buy, Plaid, a company that allows Apps like Venmo and Square Cash, the access to financial accounts. Don’t forget, it should also be that Bitcoin, as it came in front of more than 11 years on the market, has been rejected by the traditional banks immediately. In fact, Jamie Dimon, CEO of JPMorgan, was one of the most persistent critics, described Bitcoin to repeatedly as a “fraud”.
However, as the Blockchain, your advantage qualities are liable began to demonstrate, began to push the banks to get on Board the “Blockchain-turn.” You were involved in a sort of Patent race in which the Bank of America, which alone had logged in the year 2018, approximately 50 Blockchain patents, took the lead. The results were mixed, although there seems to be a marked preference for Ethereum. Both JPMorgan as well as the Spanish banking giant Santander have opted for the Blockchain to Bitcoin. In fact, Santander has issued recently a bond in the amount of $ 20 million on the Ethereum Blockchain.
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