Goldman Sachs and Santander Bail Out of Blockchain Consortium R3

654
ADVERTISEMENTSMunchee Dmarket exhastaWorldcore ICOParagon ICO

Share with:


According to a report in the The Wall Street Journal, Goldman Sachs has left international Blockchain consortium R3, but state they intend to keep developing Blockchain projects on their own. Goldman Sachs is still an investor in Blockchain technology startups Circle and Digital Asset Holdings.

It probably did not help that Goldman Sachs was taking out patents on Blockchain – originally an open source software project, but also tensions were already rising in October with European R3 members apparantly getting irate that the Americans were playing both sides, but trying to secure intellectual property rights by filing for proprietary patents while still participating in the Corda project. 

The decision by R3 to open source Corda and merge it with Hyperledger was probably the last straw for the American Bank and in the Wall Street Journal today, a spokesperson confirmed they were letting their membership lapse. 

An R3 spokesman said in an email to the WSJ.

“Developing technology like this requires dedication and significant resources, and our diverse pool of members all have different capacities and capabilities which naturally change over time.”

 

Investment bank Goldman Sachs,  one of the first nine banks to join R3 in fall 2015, decided to exit the group after failing to agree on terms of a prospective fundraising deal, sources close to the matter told Robert Hackett at Fortune.

Goldman sought more leverage in the deal, which could have included a board seat or some other element of additional control, sources said. When R3’s member financial firms moved to cap the raise at $150 million, Goldman decided to “exit the conversation and focus elsewhere,” said a source close to the matter.

A person familiar with Goldman’s internal thinking said that the bank did not expect R3 to mushroom to 70-plus members when it initially joined. The number of participants and competing interests made negotiations more difficult, the source said.

Following the news of Goldman’s departure, Banco Santander also withdrew, Reuters also reported. Santander’s reasons for leaving are less clear.

 

 

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.

Visit Website
View All Articles
advertisementBlockchain Expo