R3 Consortium planning to raise $200 million for new blockchain company

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According to recent reports, it seems like the R3 Consortium, a financial innovation company, is planning to raise a total of $200 million from its partner banks.

The funds are meant to be invested as equity stakes in a new company that will run blockchain applications, for various financial institutions. While the plans do seem quite ambitious, sources say that negotiations are already taking place and that R3 is planning to hold stake in the new company and run it for a decade.

So far, the R3 has already run a couple of tests of their blockchain technology, and even ran simulations of trading, redemption and issuing of commercial paper, thus showing how advanced they are. It’s important to keep in mind the fact that R3’s development lab will not be a part of this company. This means that any commercial products and services developed by the consortium will not be owned by the backers in the $200 million fundraising campaign.

For those that do not know, the R3 Blockchain Consortium was founded in September 2015, and serves the purpose of developing and testing new distributed-ledger technology, meant for the financial industry. So far, its list of members includes Goldman Sachs, JP Morgan, Deutsche Bank, UBS and more, all of which are required to pay a fee to work with the consortium.

Based on everything that has been outlined so far, what do you personally think about R3’s ambitious project? Will the fundraising campaign succeed? Let us know your thoughts in the comment section below.

Source: Financial News

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