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ConsenSys Acquires Quorum as Part of JPMorgan's Strategic Investment

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Tue, 08/25/2020 - 15:57
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Alex Dovbnya
JPMorgan Chase has made a strategic investment in Ethereum-based software developer ConsenSys
ConsenSys Acquires Quorum as Part of JPMorgan's Strategic Investment
Cover image via consensys.net
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Ethereum-oriented software developer ConsenSys has acquired JPMorgan's private blockchain, Quorum, according to its Aug. 25 announcement.

Quorum
Image by consensys.net

The move is part of the strategic investment that the Brooklyn-headquartered company recently received from America's largest bank.

A long-planned merger

The proprietary blockchain, which functions as a permission version of Ethereum with an open-source codebase, underpins the interbank system run by JPMorgan.

In February, Reuters was the first publication to spill the beans about the potential merger between Quorum and ConsenSys.

Due to the acquisition, ConsenSys Quorum will become interoperable with enterprise-focused Ethereum client Hyperledger Besu:

With the acquisition, ConsenSys Quorum will align the development of both private-permissioned and mainnet-compatible enterprise solutions, enabling a more complete and robust evolution of blockchain technology among businesses.

Ethereum co-founder and ConsenSys CEO Joseph Lubin claims that the freshly injected capital will be put to work to fund the development of new products:

JPM's investment in ConsenSys will also support further development of our software product suite, which helps developers build next-generation networks and enterprises launch more powerful financial infrastructure.

While the financial details of the deal have not been disclosed, the Lubin-helmed company received $20 mln from JPMorgan, according to prior media reports.

Related
Ethereum Foundation Unveils ETH 2.0 Validator Launchpad in Partnership with ConsenSys

JPM Coin is still in the pipeline

JPMorgan's ties with Ethereum go back to 2016 when it became publicly known that it was quietly developing Quorum in collaboration with EthLab.

The bank, whose controversial CEO Jamie Dimon infamously slammed Bitcoin as a "fraud" in Dec. 2017, ended up announcing its own cryptocurrency called JPM Coin that would facilitate interbank payments.

According to a Coindesk's interview with ConsenSys engineering manager Daniel Heyman, the dollar-pegged stablecoin will run on top of ConsenSys Quorum.

So while JPM Coin is 100% JPMorgan's, we’re very excited that we'll be supporting it as a software vendor and helping make them successful, as well as other projects like the Interbank Information Network.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.