By Stan Higgins,
Goldman Sachs has reportedly elected not to renew its membership in blockchain consortium R3CEV.
According to The Wall Street Journal, the bank has left the group, but notably intends to continue developing blockchain projects on its own. (Goldman Sachs is an investor in blockchain technology startups Circle and Digital Asset Holdings).
In response to the departure, R3 has said that exits among members are to be expected over time.
A spokesman told the Journal:
“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.”
Adding new pressures to the partnership may be that the consortium startup is currently seeking funding from members, and that there have been disagreements over how much equity the firm should receive given that it also collects membership fees.
Documents dated in October indicate the banks involved are seeking for the equity structure to be similar to past financial consortiums (where equity could be as low as 10%), while R3 has asked for up to 40% of the company, including 10% equity for employees.
Negotiations have been ongoing for months, though sources have offered varying estimations of their progress.
At least one member of the consortium has also reportedly renewed its membership with R3, a source within the firm said.