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R3 Seeks $200 Million In Funding

Source: bitcoin

R3

The innovation firm R3 CEV is a consortium focused on “empowering the next generation of global financial services technology.” According to the Financial News publication, the New York-based company has just announced its looking to raise $200 million USD from the some of the 42 banks involved with the group.

Also read: Talking Crix with Founder Dmitry Koval

R3 Is Looking For It’s Banking Buddies To Invest

Financial News reports that discussions are just beginning and the group’s developers led by David Rutter have already been simulating the firms proof-of-concept. Back in April, the company revealed some info on its protocol Corda which they’ve been testing for the past six months. R3’s chief technology officer Richard Gendal Brown details in a recent blog post that Corda isn’t like your typical blockchain. The work has been researched and catered to at R3’s development lab and products produced will not be owned by investors.

Distributed ledger technology has offered the world a new look at finance and can change the environment with a multitude of new technology use cases. Legacy institutions who are working with R3 include JP Morgan, Goldman Sachs, HSBC, Mitsubishi UFJ Financial Group, Morgan Stanley, National Australia Bank, Royal Bank of Canada, and more. At R3’s Collaborative Lab, Tim Grant, stated back in March:

“This is the first time many ledgers have been run in parallel by many institutions in a rigorous, scientific way,”

According to the Financial News publication, a source said that one proposed idea on the table to raise money is a ten-year stake in the company and its operations. R3’s development lab was described by David Rutter in an interview with American Banker’s Robert Barba. Rutter explained the lab is under supervision and financial institutions are allowed to participate. Rutter states:

David Rutter, R3 CEV

“It brings a technical discipline to make sure the experiments are run in a controlled fashion. We are taking a thoughtful approach to choosing our use cases in part because we are not venture-backed. We don’t have to spin up some use case and promote how we are going to make billions of dollars in a short period of time. So, build the foundation first, then have a lab where very smart people come in and test proof of concepts. From there, we pick what we build to commercialize it.”

The difference between Corda and your average blockchain is the prototype is designed with industry standards and regulatory processes in mind. There is no native currency and CTO Richard Gendal Brown has established publicly on the R3 blog the Corda protocol is “not a blockchain.” If the company raises the $200 million, it will surely help push this new framework to global institutions. As the Financial Times states the conversation of funding has just begun but the firm is looking for backing from its banking constituents. With the blockchain fervor spreading across the finance world they just might get it.

R3 Is Not the Only Firm Trying to Sell This Technology

However, the R3 consortium has lots of competitors nipping at the blockchain phenomenon. On April 6th, a successful test of blockchain technology and smart contracts were used to manage post-trade lifecycle events for credit default swaps. The test was run by blockchain-based companies Axoni, and Markit amongst some legacy institutions. The banks who backed the working group included Bank of America, Merrill Lynch, Citi, Credit Suisse, J.P. Morgan. So R3 has stiff competition in the privatized digital ledger field with the same financial institutions shopping the fintech market. Alongside these companies, there are others looking to offer enterprise blockchain solutions. Businesses like Chain, Gem, and projects such as Hyperledger are most likely also sweet talking and showcasing product to the same investors. 

What do you think about R3 CEV looking for $200 million in funding? Let us know in the comments below.


Images courtesy of R3 CEV websites and Linkedin

 

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R3 Seeks 0 Million In Funding

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Led 06

Gem Leads 2016 Blockchain Investment with $7.1 Million in Series A Funding

Source: bitcoin

Blockchain Companies

Gem, a blockchain platform provider, has announced that it has closed a Series A funding round in which it has secured $7.1 million USD in venture capital funding. This funding round, led by Pelion Venture Partners, places Gem in an early lead for 2016 blockchain investment.

Also read: Fisher Price Will Create Future Generations Of Bitcoin Developers

Gem Secures Significant Blockchain Funding

Several firms participated in this funding round, including KEC Ventures, Blockchain Capital, Digital Currency Group and RRE Ventures. Ben Dahl, a partner at Pelion Venture Partners who led the funding round and has also joined Gem’s Board of Directors told press, “We have been monitoring the blockchain industry looking for a company that could bridge the divide between enabling developers and their projects, while also advancing blockchain use cases in larger enterprises. After spending time with Gem team and their customers, we became convinced they have the foresight, traction and leadership necessary to connect the enterprise with the efficiencies and benefits of blockchains.”

Pelion Venture Partners, leading the Series A funding round, as well as the other participants, will now join a long list of Gem investors including firms such as First Round Capital, Amplify.LA, Birchmere Labs, Tekton Ventures and BTCS Inc. Gem Founder and CEO Micah Winkelspecht told press that his company was happy to bring Ben Dahl and Pelion on board, saying, “It was obvious to us immediately the Pelion team shared our vision for the future of blockchains and what would be required to get there,” said Gem Founder and CEO, Micah Winkelspecht. “We’re excited to have Ben and Pelion join the team and help us do something special.”

According to Gem, this latest funding round raises the company’s total funding to $10.4 million, giving them a solid pool of resources to achieve their goal of providing a “fully customizable platform that refines blockchain technology into a data management application that can be applied cross-industry.”

Gem is a blockchain platform company based in Venice, California. Gem partners with companies to harness blockchain technology with a scalable, modular and custom-built platform. Gem refines blockchain technology to power smart networks that connect industries.

What do you think about this latest announcement from Gem? Let us know in the comments below!


Source: Press Release

 

The post Gem Leads 2016 Blockchain Investment with $7.1 Million in Series A Funding appeared first on Bitcoinist.net.

Gem Leads 2016 Blockchain Investment with .1 Million in Series A Funding

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