JPMorgan Weighs Spin-Off Of Quorum Blockchain
Global financial services company JPMorgan Chase is reportedly considering establishing its Quorum blockchain as a separate company in order to increase the platform’s appeal.
Created in 2016 and running on top of ethereum, Quorum is an enterprise-focused, permissioned blockchain infrastructure specifically designed for financial use cases. The aim is to create a digital ledger tailored for use by private enterprise clients such as banks, manufacturers and corporations. Companies with Quorum-based projects include Microsoft, ING Groep NV, IHS Markit and Pfizer.
In a Bloomberg report, a source close to the situation said that JPMorgan executives are weighing whether Quorum might benefit in the long run from operating independently, supporting open-source projects that attract additional partners.
However, a JPMorgan spokesperson declined to comment on the “speculation” that Quorum would soon be its own company. JPMorgan spokesman Brian Marchiony said in a statement that they’re not going to comment on speculation, but Quorum has become an extremely successful enterprise platform even beyond financial services and they’re excited about its potential.
“We continue to believe distributed ledger technology will play a transformative role in business, which is why we are actively building multiple blockchain solutions,” Marchiony said.
The source said it remains unclear what the spin-off plans would mean for the JPMorgan employees that have been working on Quorum and whether they would join the new entity. The project has notably been headed up by JPMorgan’s Blockchain Center of Excellence executive director Amber Baldet. The source said Baldet could decide to leave the firm and start a new venture, join the spun-off entity or stay at the bank.
In October 2017, JPMorgan announced that it would be using Quorum to build an interbank payments platform alongside Australia and New Zealand Banking Group and the Royal Bank of Canada.
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