JP Morgan Looks to Strengthen Blockchain Footprint by Merging Quorum with ConsenSys

The Deal in a Nutshell

This week’s financial news is buzzing with the inkling that JPMorgan Chase might just be about to pull off something big—merging its blockchain operation, Quorum, with the Ethereum-loving software wizards over at ConsenSys. If the rumors hold, we can expect this merger to tie the knot by the end of Q3 2020. Quorum is already dancing on the Ethereum stage, powering JPMorgan’s Interbank Information Network, which gives a high five to over 300 banks.

A Marriage of Blockchain Minds

Why this merger? According to industry experts, it’s not just a romantic idea over some cappuccino; it’s a smart strategic move. Gregory Klumov, a stablecoin bigwig, points out that the timing is just right as the bears are packing their bags for hibernation. In a market that’s been tough, it appears this combination could kickstart a fresh cycle.

The Expert Opinions

Michael Poutre, CEO of Terraform Capital, shared his two cents on the matter. He believes that getting in bed with ConsenSys means JPMorgan can tap into a pool of brilliant minds, headed by none other than Ethereum co-founder Joseph Lubin. Poutre smartly noted that it’s like wanting to try a new dish at a restaurant—JP Morgan is taking its time to ensure they ‘try the milk for free before buying the cow.’ That’s savvy!

Beyond the Layoffs

Amid the merger buzz, ConsenSys recently laid off about 14% of its team. While some eyebrows raised, not everyone thinks it’s a sign of doom. Alex Axelrod from Aximetria reckons it’s merely the fluctuating waves of the crypto ocean. Danilevski reiterated that staffing adjustments are common in this industry, especially in departments less focused on tech. Rumor has it they didn’t fire the cooks in the kitchen.

Market Predictions

So, what does this mean for the market? Pricing for Ether is on the up, but what will happen next? Klumov believes this partnership could create a ripple that could somewhat shake up the industry, while Danilevski isn’t so sure about a significant wave just yet. He’s got a point; considering Ethereum continues to be a darling in the DeFi space, it’s strategic for JP Morgan to cozy up with the developers behind it.