R3 Consortium Has $100 Million Warchest

New York’s R3 consortium has raised more than $100 million from financial institutions to develop a blockchain platform, even after losing some prominent supporters along the way.

The group said its partners include some of the world’s biggest banks, plus Intel and Temasek, the Singapore state investment company. However, all was not paradise with aligning the interests. Investment firms like Goldman Sachs and JP Morgan are withdrawing from R3 after initially committing, hoping to develop their own solutions to implementing blockchain in their businesses.

The R3 capital fundraising’s first two stages were open only to members of the R3 consortium. A final funding push will begin this year and will be open to non-members.

R3 plans to use the funds to continue development of Corda, its blockchain platform.

“This investment is unprecedented,” said David Rutter, chief executive of R3 and a former executive at ICAP, the interdealer broker. “Many of the world’s largest financial firms have come together not just with capital support, but with a robust commitment to work with R3. We’ve got unparalleled momentum.” R3 has grown to a staff of more than 100 people and describes itself as the “de facto centre of gravity” for blockchain technology in the wholesale financial markets.