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Wednesday, May 12, 2021
Home News Goldman Sachs and Santander Bail Out of Blockchain Consortium R3

Goldman Sachs and Santander Bail Out of Blockchain Consortium R3

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.

 

 

Richard Kasteleinhttps://www.the-blockchain.com
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, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has 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 at over 50 events in 30+ cities.
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