KEY POINTS

  • JP Morgan is planning on merging Quorom to blockchain startup ConsenSys
  • Quorom is the bank's blockchain unit, an Ethereum variant, that powers the IIN
  • The merger is deemed to be positive for the price of the top altcoin

Ethereum (ETH) is already one of the better-performing assets this year and even overshadowed Bitcoin (BTC) in the process. The media's attention to the increasing use of DApps and DeFi has somewhat buoyed ETH's price with technicals there to support it.

Now, Ethereum, after two weeks of gains, is nearing $250, and JP Morgan's deal may have something to do with this new 2020 high. The largest U.S. bank by assets is reported to be looking into merging Quorom to blockchain software company ConsenSys, according to Reuters.

Quorom is the blockchain unit of JP Morgan, and it powers the payment network IIN (Interbank Information Network) that involves more than 300 banks worldwide, with an additional 80 Japanese banks reported to have signed a letter of intent to join back in December.

The network's role is to facilitate information-sharing for payment verification within member banks, a way to fend off money laundering. The bank also plans to use Quorom to issue its own crypto called JPMorgan Coin, which is designed to make payments faster. 

JP Morgan's deal with Brooklyn-based ConsenSys is likely its best option after about two years of consideration for how it will revamp Quorom. Since both are linked to the Ethereum ecosystem and have been involved in initiatives in the past, the merger is deemed to be the best course of action for the two firms.

ConsenSys is a blockchain startup that is a platform for developing blockchain software services and applications. It is founded by Joe Lubin, who is a co-founder of Ethereum, in 2015.

Up to this point, there are no clear financial terms concerning the merger, and a more formal announcement will be made within the next six months.