The largest American bank by assets JPMorgan might be close to moving it’s blockchain project Quora to Ethereum-based ConsenSys.
One of the biggest financial institutions in the US, JPMorgan is planning to lead the new investment round to the blockchain technology firm ConsenSys. The bank’s contribution could reach $20 million, claim the insiders familiar with the case.
With the move, JPMorgan is expected to transfer its blockchain project Quorum to ConsenSys. The deal will end the talks among both parties that started in February. As Reuters reported at the time, JPMorgan has been planning to spin-off Quorum for nearly a few years including the option of merging it with another company. The deal is expected to be closed by the end of August.
Quorum is JPMorgan’s internal blockchain created to run the Interbank Information Network, which acts as a platform to transfer funds between more than 300 banks. Built on the Ethereum network, the blockchain is as well the platform on which the JPM Coin was issued this February.
JPM Coin is the first dollar-backed stablecoin that is issued by the US bank. The digital coin is created to enable the instantaneous transfer of payments between institutional clients.
According to Reuters, ConsenSys the Ethereum-focused blockchain software company was picked due to its specialization on Ethereum and also because both companies have been collaborating before.
Founded back in 2015, ConsenSys has been undergoing a restructuring lately, separating software development from other activities. The alliance with Quorum is expected to strengthen its blockchain software department.
Reportedly, the upcoming merger will have no influence on JPMorgan’s Interbank Information Network and JPM Coin as both of the projects will remain operating afterwards.