JPMorgan Chase & Co. is considering getting rid of Quorum, its blockchain project, to improve the attractiveness of the platform as an independent entity, according to Reuters. The code of the open source platform is free and can be redistributed and modified.
The plans, reported for the first time by the Financial Times, are still in the early stages, according to one source.
The bank issued a statement saying that it still believes that distributed ledger technology will play a transformative business role and that it continues to build multiple blockchain solutions. The statement also noted that Quorum has become an “extremely successful” business platform even beyond financial services.
The JPMorgan Quorum, created in partnership with EthLab, was co-founded in 2016 by Jeffrey Wilcke, a leading Ethereum developer, as “a minimalist fork of the Go Ethereum customer” and a “derivative of Go Ethereum”. It allows hundreds of transactions per second, and greater privacy, since smart contracts can only be validated by the parties to the contract.
Spinoff Impact Uncertain
A source said that it is not known what impact the spin-off would have on JPMorgan employees working at Quorum.
Amber Baldet, executive director of JPMorgan’s Blockchain Center of Excellence, who has been leading Quroum’s product development, could join the spin-off or stay in the bank, the source said.
Baldet did not respond to a request to comment.
Blockchain Projects Ebb And Flow
Banks have spent millions on blockchain technology, in the hope that it will reduce costs and simplify some processes, such as the settlement of security exchanges and global payments.
However, the technology is still in its formative period and many projects have faced growing pains.
JPMorgan was part of the R3 blockchain consortium, but left the consortium last year, along with other banks involved in the project.
JP Morgan was also the main investor in Digital Asset, competitor of R3, in a financing process of $ 50 million more at the beginning of 2016. The banking giant is also a member of the Hyperledger Project led by the Linux Foundation.
Quorum was originally established in the Ethereum network, which served as an important endorsement of Ethereum.
JPMorgan said it would use Quorum for interbank payments in conjunction with Royal Bank of Canada and Australia and New Zealand Banking Group.