Brooklyn-based technology startup ConcenSys has acquired Quorum, JPMorgan Chase & Co.’s blockchain database network. Quorum powers JPMorgan’s Interbank Information Network (IIN), which is used by nearly 400 banks worldwide.
The deal was part of the strategic investment by JPMorgan in ConsenSys. Meanwhile, the former will continue to use Quorum’s blockchain technology to test its digital currency — JPM Coin — designed to be used for instant payment transfers through blockchain.
Founder and CEO of Consensys and Ethereum Co-Creator Joseph Lubin expressed his excitement at getting Quorum onboard into the ConsenSys Enterprise Ethereum stack. He further added that they “look forward to unifying [their] Hyperledger Besu-based Enterprise Ethereum client with Quorum, and supporting all of the Quorum installations globally.”
As a result of acquiring Quorum, ConsenSys is now able to provide diverse products and services including the availability of features and capabilities such as digital asset functionality and document management.
As others may presume, the merger with Quorum has no negative impact on IIN, rather it will assist ConsenSys to align its shift toward growing its software division. The technology will be kept open source and the Quorum brand will be maintained. All Enterprise Ethereum protocol technology at ConsenSys will fall under the new ConsenSys Quorum brand.
Umar Farooq, global head of blockchain at JPMorgan, noted that:
The platform would thrive better in the hands of a software and services-oriented organization.
JP Morgan chose to partner with ConsenSys as both are leading organizations in Enterprise Ethereum and have worked together in the past on numerous initiatives. Since Quorum launched in 2016, the two have collaborated to make Ethereum the platform of choice for enterprises building secure and customizable business networks at scale.
In addition to ConsenSys’ acquisition of the Quorum, JPMorgan showed support for ConsenSys’ mission to help developers build next-generation networks and enable enterprises to launch more powerful financial infrastructure.
J.P. Morgan’s Corporate & Investment Bank is a global leader across banking, markets, and securities services while ConsenSys is a leading Ethereum software company.