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.

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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 and publisher of industry publication Blockchain News (EST
2015), a partner at ICO services collective Token.Agency
($750m+ and 90+ ICOs and STOs), director of education company
Blockchain Partners
(Oracle Partner) and ICO event organiser
at leading industry event CryptoFinancing (Europe's first ICO event now
branded Tokenomicon)
– Vancouver native Richard Kastelein is an award-winning publisher,
innovation executive and entrepreneur. He sits on the advisory boards
of some two dozen Blockchain startups and has written over 1500
articles on Blockchain technology and startups at Blockchain News and
has also published pioneering articles on ICOs in Harvard Business Review and Venturebeat.  Irish Tech News put him in the top
10 Token Architects in Europe.

Kastelein has an Ad Honorem - Honorary Ph.D. and is Chair Professor of
Blockchain
at China's first Blockchain University in Nanchang
at the Jiangxi Ahead Institute of Software and Technology. In 2018 he
was invited to and attended University of Oxford's Saïd Business School
for Business Automation 4.0 programme. Chevalier (Knight) - Ordre des
Arts et des Technologies at Crypto Chain University and an Advisory
Board Member of International Decentralized Association Of
Cryptocurrency And Blockchain (IDABC) as well as Advisory Board Member
at U.S. Blockchain Association. Over a half a decade experience judging
and rewarding some 1000+ innovation projects as an EU expert for the
European Commission's SME Instrument programme as a startup assessor
and as a startup judge for the UK government's Innovate UK division.

Kastelein has spoken (keynotes & panels) on Blockchain
technology in Amsterdam, Antwerp, Barcelona, Beijing, Brussels,
Bucharest, Dubai, Eindhoven, Gdansk, Groningen, the Hague, Helsinki,
London (5x), Manchester, Minsk, Nairobi, Nanchang, San Mateo, San
Francisco, Santa Clara (2x), Shanghai, Singapore (3x), Tel
Aviv,  Utrecht, Venice,  Visakhapatnam, Zwolle and
Zurich.  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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