Blockchain Consortium R3 Wants To Raise Raise $200 Million from Member Banks – Proposal May Not Be Going Down Well

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Financial innovation company R3 is planning to raise $200 million from member banks of the Blockchain consortium in return for equity stakes in a new company that will run applications based on Blockchain technology for financial institutions, according to a scoop by eFinancial News reporter Ann Irrera.

An inside source told eFinancial News that negotiations have already taking place and are still at an early stage, adding that R3 is proposing to hold a stake in the company and run it for ten years.

But it appears that not everyone might not be too happy about the proposal. 

According to an article by Finextra titled “Blockchain consortium R3 facing unrest over capital raise”  that has been deleted from their website (but still available in Google Cache), it appears that the move may be rustling some feathers. There’s also a screenshot of the article here. UPDATE:  A blogger at Bitcoin Error Log found another buried article describing the brouhaha written by By Alex Hamilton at IBS Intelligence at Google Cache

The proposals have not gone down well with the core membership, who want a bigger return on their intellectual capital investment and support for projects emerging from the lab.

One industry insider described the stand-off as an “implosion at R3”, adding “the big banks are apoplectic with the high handed approach and are busy ‘considering their options’.”

Led by David Rutter, a former executive at interdealer broker Icap, R3 is charges $20,000 a month per bank a source told Blockchain News and they pull in approximately $10 million dollars a year already. 

Headquartered in New York City R3 is a financial innovation firm that leads a consortium partnership with over 40 of the world’s leading banks, to design and deliver advanced distributed ledger technologies to global financial markets. 

On March 3, 2016, R3 announced that it had completed a trial involving 40 banks held in the last two weeks of February, testing the use of Blockchain solutions offered by Eris Industries, IBM, Intel and Chain to facilitate the trading of debt instruments. This was a follow-on to an 11-bank trial conducted earlier in January which used Ethereum hosted on Microsoft Azure.

 

About Richard Kastelein

Founder of industry publication Blockchain News, partner at ICO services collective CryptoAsset Design Group (helped raise over $200m+), director of education company Blockchain Partners (Oracle Partner) and ICO event organiser at leading industry event  CryptoFinancing (first ICO event in Europe) – Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He sits on the advisory boards of half a dozen Blockchain startups and has written over 1200 articles on Blockchain technology and startups at Blockchain News and has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.
 
Kastelein has spoken (keynotes & panels) on Blockchain technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels, Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki, London, Manchester, Minsk, Nairobi, Nanchang, San Mateo, Shanghai,Tel Aviv and Venice. His network is global and extensive.
 
He is a Canadian (Dutch/Irish/English/Métis) whose writing career has ranged from the Canadian Native Press (Arctic) to the Caribbean & Europe. He’s written occasionally for Harvard Business Review, Wired, Venturebeat, The Guardian and Virgin.com and his work and ideas have been translated into Dutch, Greek, Polish, German and French.
 
A journalist by trade, an entrepreneur and adventurer at heart, Kastelein’s professional career has ranged from political publishing to TV technology, boatbuilding to judging startups, skippering yachts to marketing and more as he’s travelled for nearly 30 years as a Canadian expatriate living around the world.
 
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, “The Hitchhiker’s Guide to the Seas’ travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, Netherlands where he’s raising three teenage daughters with his wife and sailing partner, Wieke Beenen.

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