JP Morgan said to examine spin-off of its blockchain project to win wider adoption

  • J. P. Morgan developed Quorum two years ago for clearing and settling derivatives and cross-border payments.
  • Rival banks are said to be reluctant to use the platform because it is so closely associated with J. P. Morgan, the FT reported.
69742149
Justin Sullivan | Getty Images

J. P. Morgan Chase is reportedly working on a spin-off of its main blockchain project in part to get a wider audience for it.

The report, by the Financial Times, said the bank developed its blockchain technology called Quorum two years ago for clearing and settling derivatives and cross-border payments.

A spin-off of Quorum would highlight the difficulties Wall Street firms often have after developing new technologies for the industry but failing to get much outside adoption as an in-house application.

The FT says rival banks might have been reluctant to use Quorum because it was so closely associated with J. P. Morgan.

Blockchain is a distributed ledger technology underpinning cryptocurrencies like bitcoin but banks have tested its use for payments and other activities. A spokesman told the FT the bank wasn't going to comment on the speculation, but "Quorum has become an extremely successful enterprise platform even beyond financial services and we're excited about its potential."

WATCH: Advisors believe in blockchain