The deal could be formally announced this year only, as soon as within the next six months. However, the financial terms of the deal are still unclear.
It is also unclear whether the 25 people currently working on the Quorum team globally will join ConsenSys.
This news came hot on the heels of ConsenSys which is founded by Joe Lubin, co-founder of Ethereum laying off 14% of its workforce last week, the second one after the laid off of 13% of its employees in Dec. 2018. The news of the termination of 11 of its employees came after the company decided to shut down its operations in India and the Philippines in Dec. 2019.
Bullish New or Capitulation?
Ethereum-based blockchain network Quorum blockchain was built by JPMorgan internally. The chain is used by the investment banking giant in the Interbank Information Network, a payment network with over 300 banks.
Last year, the bank announced the launch of its digital currency JPMorgan Coin to make instantaneous payments.
JPMorgan has been apparently considering spinning off Quorum for the past two years, said one of the people familiar with the plans. This merger with ConsenSys, which was one of the options in its evolution, is expected to have no impact on the payments network, IIN and other projects that the financial institution is running on the blockchain.
Additionally, both the organizations have worked in joint initiatives in the past and would help ConsenSys in making the shift towards growing its software division. Meanwhile, Quorum will maintain its brand even after the merger and keep the technology open source.
Meanwhile, Morgan Creek Digital’s Anthony “Pomp” Pompliano says, “Most people are positioning this as bullish news, but what if this is actually JP Morgan capitulating right before the halving and next bull market? Building stuff is hard.”
ETH laso took a jump of nearly 6% today, going to $235, recording 68% gains on a year-to-date basis.