According to a report by CNBC, J.P. Morgan is working on breathing fresh life into its 2-year-old Quorum project. The open-source project was launched in 2016 in the Sibos conference and built over the Ethereum blockchain. The financial institution may try to focus on getting a wide audience for its blockchain tech.
Speculations ripe at Wall Street
The blockchain based technology was developed for settling and clearing cross-border payments and derivatives. It is designed to support every application that requires high speed and high-end processing of private transactions within a group of authorized participants.
Brian Marchiony, a spokesperson at J.P. Morgan, stated, “We’re not going to comment on speculation, but Quorum has become an extremely successful enterprise platform even beyond financial services, and we’re excited about its potential.”
The new usage of Quorum will likely highlight the problems faced by Wall Street firms after developing new technologies. The technologies created by the banks are often not adopted by outsiders, and it often remains an in-house application. It is evident that competitor banks did no use the application as it was a brainchild of J.P. Morgan.
An insider from the firm said, “We continue to believe distributed ledger technology will play a transformative role in business, which is why we are actively building multiple blockchain solutions”, as reported by Bloomberg.
Quorum partners for better adoption
Quorum was used by successful companies like Microsoft, IHS Markit Ltd., ING Groep NV and Pfizer Inc. The bank is aiming to create a tailored digital ledger that can be used by private clients such as manufacturers, banks, and corporations. They want to test the benefits Quorum will provide in the long run by supporting open-source projects, operate independently and attract additional partners.
No decision has been made that can give a definitive pan to the venture. The planning process is still in its early days as firm’s spokespersons have not disclosed any information on the usage of the technology. The new project will likely be headed by Amber Baldet who serves as the director of Blockchain Center of Excellence for J.P. Morgan. Baldet will be taking the decision of launching Quorum as a separate entity from the giant firm. It is still unclear whether the current employees working on Quorum will be employed in the new venture.
In 2017, Quorum entered a partnership with Australian bank ANZ and the Royal Bank of Canada for an interbank payment system. It was an opportunity for J.P. Morgan to get benefit from the newly formed IIN- Interbank Information System.
It is to be noted that J.P. Morgan called Bitcoin a fraud once and now it is trying to thrive a new venture based on cryptocurrency’s native technology. Jamie Dimon, CEO, and Chairman of J.P. Morgan Chase is very positive on other banks using IIN for reducing the time invested in cross-border payments.
As of now, it would be a hard path for the financial giant to give a new identity to Quorum. Other banks and corporations can be initially reluctant in using its home-grown technology.