JPMorgan's (JPM) Quorum Platform Acquired by Startup ConsenSys

JPMorgan’s JPM enterprise blockchain platform, Quorum, has been acquired by Brooklyn, N.Y.-based Ethereum-focused industry startup ConsenSys. Moreover, JPMorgan has made an investment in ConsenSys to support its goal of helping developers build next-generation networks and hence enabling enterprises to launch more powerful financial infrastructure.

With the help of Quorum, ConsenSys now offers a full range of products and services, accelerating the availability of features like digital asset functionality, and document management.

Now, all the enterprise work done at ConsenSys will fall under the “ConsenSys Quorum” brand. Quorum will remain open source and become interoperable with ConsenSys’ other leading blockchain products.

Over a decade ago, blockchain emerged as the software used to track cryptocurrency transactions. In 2016, JPMorgan developed the Quorum blockchain platform internally based on the Ethereum protocol and since then has been using the Quorum network to process transactions within a permissioned network, which solves for privacy and performance challenges.

Umar Farooq, global head of blockchain, JPMorgan, said, “The creation of Quorum was a first for J.P. Morgan, both in terms of developing its own blockchain protocol, and open-sourcing software for the developer community. We’re incredibly proud of the usage of Quorum over the past few years and are excited to have ConsenSys as a partner to take the vision forward.”

Joseph Lubin, founder and CEO of ConsenSys and co-creator of Ethereum, stated, “Even before the very first block on Ethereum was mined and ConsenSys was formed, we’ve collaborated with J.P. Morgan on Ethereum proofs of concept and production systems. We are enormously excited to onboard Quorum into the ConsenSys Enterprise Ethereum stack, and look forward to unifying our Hyperledger Besu-based Enterprise Ethereum client with Quorum, and supporting all of the Quorum installations globally.”

Our Take

JPMorgan (the biggest bank by assets in the United States) remains well-poised for growth. The company has remained focused on acquiring the industry's best deposit franchise and strengthening its loan portfolio. Moreover, its initiatives to expand branch network in new markets will likely continue supporting profitability.

Shares of JPMorgan have lost 17.2% over the past six months compared with the industry’s decline of 20.1%.

Currently, the company carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the finance space are mentioned below.

ETRADE Financial Corporation ETFC witnessed an upward earnings estimate revision of 13% for the current year over the past 60 days. Its share price has increased 12.1% over the past three months. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for TD Ameritrade Holding Corporation’s AMTD current fiscal-year earnings has been revised 21.7% upward over the past 60 days. Its share price has decreased marginally over the past three months. The company currently sports a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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