Investment bank JPMorgan will invest 20 million USD to the blockchain company ConsenSys during the 50 million USD fundraising round.
ConsenSys expects to raise funds through convertible bonds. The size of the deal is $ 50 million – the bank will invest about $ 20 million in ConsenSys. It is expected that the round will be closed this month. JPMorgan’s investments are called strategic: it was supposedly agreed that the assets of the bank’s blockchain division, Quorum, will go under the control of ConsenSys.
Quorum is an Ethereum-based enterprise blockchain platform that JPMorgan has been developing since 2016. The platform is tailored for work with confidential data – it is used by many consortium blockchain projects.
Quorum is also responsible for processing of operations and management of the IIN, which JPMorgan launched in 2017. The IIN was created to speed up payments between various financial institutions. In addition, the blockchain platform is involved in the JPM Coin stablecoin project.
Information that ConsenSys and JPMorgan are discussing the transfer of Quorum assets under the management of Lubin’s company appeared in February 2020. The media then wrote that the investment bank has been looking for an opportunity to transfer its blockchain division to the status of a separate organization for a long time. JPMorgan believes that Quorum is more likely to gain industry recognition and popularity as a stand-alone company.
ConsenSys was selected because JPMorgan uses Ethereum in its projects and participates in some of the company’s initiatives. It is not known how the potential merger will affect the work of the IIN and other projects of the financial organization that employs Quorum.