Odaily Frontline | ConsenSys, which has just laid off 14% of its staff, is going to merge with JPMorgan Chase

念银思唐

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2020-02-11 22:59 (UTC+8)

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Will the merger of traditional financial companies and fintech startups become a trend?

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Will the merger of traditional financial companies and fintech startups become a trend?

This article comes fromCryptoSlate, original author: Christina Comben

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In today's Reuters exclusiveto reportto report

The merger with ConsenSys will not affect IIN and JPMorgan's other Quorum-based projects, one of the people said. JPMorgan has been considering spinning off Quorum for nearly two years and has evaluated options including creating an open source foundation, creating a new company or merging with another, the person said. A merger with ConsenSys was chosen as the best option since both parties have worked with Ethereum and have participated in joint operations in the past.

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JPMorgan Chase and ConsenSys "marriage" is imminent

It is reportedly unknown whether the Quorum team will join ConsenSys after the merger. Furthermore, it is unlikely that a formal agreement will be announced any time soon while negotiations are still ongoing. Financial details are also to be confirmed.

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The merger of traditional finance and fintech startups will become a new trend

The merger between JPMorgan and ConsenSys has drawn attention to the growing number of traditional financial institutions that are acquiring or merging with nimble fintech startups.

Morgan Creek Digital co-founder Anthony Pompliano tweeted Jan. 14CommentComment

The claim: Visa just announced that they will acquire financial startup Plaid for $5.3 billion. Existing financial services companies will acquire various fintech startups over the next 3-5 years. If they don't, these startups will put them out of business.

Let's also not forget that when Bitcoin was created over 11 years ago, it was immediately dismissed by traditional banks. In fact, JPMorgan Chase CEO Jamie Dimon is one of the staunchest critics, repeatedly calling Bitcoin “a fraud.”

However, as the blockchain that powers bitcoin transactions begins to show its strengths, banks are scrambling to get on the blockchain train.

They entered a patent race in which Bank of America came out on top, filing around 50 blockchain patents in 2018 alone.

JPMorgan's Quorum blockchain unit is also currently operating the Interbank Information Network (IIN), a payments network involving more than 300 global banks. As the largest bank in the United States by assets, JPMorgan Chase merged its blockchain business with Ethereum co-founder Joseph Lubin's blockchain startup ConsenSys, which is of great significance.

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ConsenSys Layoffs

Ethereum developer ConsenSys announced at an all-hands meeting last Tuesday that it is shifting focus and its latest restructuring will reduce the company's headcount by about 14%. In the coming months, ConsenSys will complete its transition from a venture capital production model and spin off some of its internally funded projects into the ConsenSys Investments portfolio, the company said in a statement. The move aims to prioritize the development of some of the leading infrastructure platforms of the Ethereum ecosystem. According to people familiar with the matter, ConsenSys will focus on four core products, including Infura, PegaSys, MetaMask and Codefi.

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