JPMorgan Chase & Co leaves blockchain consortium R3 CEV

Although JPMorgan has left the consortium, it has cleverly distributed its bet in the blockchain technology. It has joined the Enterprise Ethereum Alliance and is an investor in blockchain startups Digital Asset Holdings and Axoni. It is also a participant in the Hyperledger Project, a cross-industry group led by the Linux Foundation.

JPMorgan Chase & Co In is the latest member to leave the New York-based startup R3 CEV, a mammoth blockchain consortium, over the course of the company’s fundraising process, with R3 confirming the move.

R3, has 80 financial institutions as its members, is wanting to raise $150 million from its members and strategic investors and has offered them a 60% stake in the company.

“JPMorgan parted ways with R3 to pursue a very distinct technology path which is at odds with the one chosen by the global financial services industry, represented by our 80-plus members,” said Charley Cooper, a managing director at R3.

JPMorgan declined to comment.

Other large banks have also departed from the R3 consortium. In 2016, National Australian Bank, Goldman Sachs Group Inc, Morgan Stanley and Banco Santander SA left the group in quick succession with R3 proceeding with its fundraising plans.

Like its peers who have left the mammoth consortium, JPMorgan’s involvement in blockchain technology continues in its other ventures.

JPMorgan is a member of the Enterprise Ethereum Alliance and is an investor in blockchain startups Digital Asset Holdings and Axoni. It is also a participant in the Hyperledger Project, a cross-industry group led by the Linux Foundation.

Since the company’s founding, R3 has quickly gained the support from the world’s largest banks, including Deutsche Bank AG, UBS Group AG, Bank of America Corp and Barclays Plc.

R3 has maintains a paid membership fee for companies to participate in its activities.

Initially the company had planned to raise $200 million from its members and had proposed to give them a 90% stake in the new company, however, in November, it revised the offer and said members would get a 60% stake for $150 million.

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