Just one day after Goldman Sachs exited R3 blockchain consortium, Santander has confirmed it will be leaving as well, causing fears of a domino effect
Is this the beginning of the end for The R3 Blockchain group and R3CEV? Things are not looking good for the much-hyped R3CEV project. R3, the company that leads a consortium of 73 of the world biggest financial institutions in blockchain R&D has lost two members in as many days.
Yesterday banking giant Goldman Sachs, one of R3’s founding members confirmed that it would no longer take part in a $150m funding round or future consortium activities. Goldman has not clarified its reasons for leaving. However, it’s widely believed that their exit is due to the request by R3 to contribute large sums to the $150 million investment round.
Spanish banking giants Santander have added to the consortiums woes with their announcement to leave the group. In a press statement, the company cited its indifferences with R3 members regarding the upcoming equity-funding round as its primary reason to drop out. The move is reportedly unrelated to the Goldman Sachs departure.
In a statement, R3 said: “As with any project of this scale and scope, we always expected the make-up of the consortium to change over time. 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.”
R3 is not the only company developing blockchain technology applications for the finance industry but is by far the most prestigious and well known. Both Goldman Sachs and Santander are investors in Digital Asset Holdings, a rival blockchain startup headed by former J.P. Morgan executive Blythe Masters.
While there are still around 70 members of the R3 consortium, the latest withdrawal of Goldman and Santander does not bode well for the group.