R3 explores strategic options amid blockchain industry challenges

Enterprise blockchain services provider R3 is looking for strategic options. It has been considering possibilities for at least the last six months, according to a report. R3 is the developer of the Corda blockchain.

R3 has held “initial discussions” with Ava Labs, the Solana Foundation and Adhara, looking at options such as a joint venture, selling itself or selling a minority stake, according to Bloomberg, which cited people familiar with the matter.

A highly visible blockchain with many partners

Corda is an open, permissioned blockchain that counts the Swiss digital stock exchange SDX, fintech Hqlax and Japanese financial services conglomerate SBI among its users. It is also a consistent participant in research projects with the Bank of International Settlements, SWIFT and a variety of central banks and large financial institutions.

R3 launched Corda in 2019 . It adopted XinFin’s XDC token as its settlement coin in 2021.

In June 2023, R3 partnered with liquidity management and payment solutions provider Adhara to launch a Hyperledger Lab to develop interoperability solutions. Adhara is one of the parties R3 has been in strategic discussions with.

R3 cut 20% of its staff in September 2023, within weeks of Chainalysis and Binance and in keeping with industry trends. It currently has between 200 and 250 employees, Bloomberg said.

Some of Cord’as use cases. Source: R3

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From consortium to startup in 10 years

New York-based R3 began as a consortium of nine banks in 2014 and grew to over 70 members by  2016. It eventually had over 200 members. Even Russia’s Sberbank expressed interest in joining it, and AWS contracted with it in 2017 .

R3 began to experience financial setbacks and lost members in 2016. Some former members, like JPMorgan Chase, went on to develop their own blockchains.

R3 raised $122 million from 40 institutions, including Barclays, UBS, and Wells Fargo, in 2018 and considered holding an initial public offering the same year.

Source: Mikko Ohtamaa

R3 did not immediately respond to a Cointelegraph request for more information on its plans.

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