Ethereum blockchain venture production studio, ConsenSys, has announced the acquisition of JP Morgan Chase blockchain unit, Quorum, according to a Reuters report today.
Despite ConsenSys’s acquisition, Quorum will still be run by JP Morgan’s staff in the meantime to help with the transition process and support the bank’s future and current blockchain projects.
ConsenSys noted that it would merge its existing engineering protocol with Quorum, to get the best out of both codebases.
Joseph Lubin, CEO, and founder at ConsenSys said in an interview:
We have acquired the Quorum intellectual property, […], and there is a commercial arrangement to continue to support JPMorgan in their projects.
In addition to the deal, Lubin disclosed that the United States multinational investment bank made a strategic investment in the firm to allow developers to build next-generation networks and more powerful financial infrastructures.
Commenting on the development, Umar Farooq, head of JP Morgan’s blockchain projects said:
The creation of Quorum was a first for J.P. Morgan, both in terms of developing its blockchain protocol, and open-sourcing software for the developer community.
He added that since its launch, Quorum had made significant progress, and today’s development would see ConsenSys take the tech’s vision forward. However, financial details of the investment remain unknown as at press time.
Coinfomania first reported the development in February. At the time, it was reported that JP Morgan was seeking to restructure the platform by establishing a new startup that will head its operations or merge it with other companies.
Quorum leverage for faster payment solution
JP Morgan’s Quorum was built on the Ethereum blockchain as an open-source platform to run the Interbank Information Network (IIN), a payment network for more than 300 banks. Despite the purchase, Quorum will still be leveraged to service the banks and similar projects, Reuters added.
Aside from being used in the IIN payment network, Quorum also facilitated JP Morgan’s cryptocurrency, JPM Coin launch, in February.
The project was developed to leverage the blockchain tech to provide fast cross-border payment service for its overwhelming daily transactions valued at $6 trillion.
Although still in trial, the cryptocurrency saw JP Morgan become the first United States bank to launch a digital currency for its institutional clients, who have passed the necessary regulatory checks.