JPMorgan, Microsoft Team Up on Blockchain
May 02 2019 - 4:08PM
Dow Jones News
By Sara Castellanos
JPMorgan Chase & Co. said Thursday that it is tapping
Microsoft Corp.'s cloud-based services to boost its blockchain
platform, aiming to make it easier, faster and cheaper for
companies to build and deploy blockchain applications.
Microsoft's Azure will power the platform, named Quorum, which
will allow enterprises to build new blockchain applications in as
little as a few weeks without needing as much expertise, said Umar
Farooq, JPMorgan's head of blockchain initiatives. Financial terms
of the deal weren't disclosed.
"It was important to make sure that we could provide the sort of
enterprise tools and services that [companies] need," Mr. Farooq
said.
While the bank doesn't charge companies to use Quorum, Mr.
Farooq said getting more organizations to use one blockchain
platform could help iron out standards for building blockchain
applications and sharing data.
French luxury-goods company LVMH Moët Hennessy Louis Vuitton SE
is using Quorum to provide proof of authenticity of its luxury
goods, according to a person familiar with the matter. LVMH
declined to comment.
Best known as the record-keeping system behind cryptocurrencies,
blockchain is a data structure that makes it possible to create and
share a digital ledger of transactions among various parties. The
data, encrypted and unchangeable, is always up to date on all
participants' systems.
JPMorgan built Quorum about four years ago on the
blockchain-based Ethereum network. The bank also uses Quorum for
internal purposes, such as to experiment with how blockchain could
be used for capital markets. It issued its digital coin, the JPM
Coin, on Quorum.
Through the Microsoft Azure partnership, technology teams will
get access to tools to write and test blockchain code. The code can
be managed in the Azure cloud as developers log onto a website and
send data from relevant databases to and from the Quorum network.
By easing the process for companies, the bank expects more use of
blockchain. Without the Azure cloud, blockchain projects require a
higher degree of involvement from IT teams and many blockchain
experts, Mr. Farooq said.
"It allows [companies] to get to production faster and allows
them to do things that generally would have been more complicated,"
Mr. Farooq said.
Companies using Quorum could build blockchain proof-of-concept
applications in about six weeks as opposed to six months because of
the cloud, and they can use their existing IT teams, said Matt
Kerner, general manager for industries and blockchain at Microsoft
Azure.
"Many developers don't yet know how to write code for
blockchain," Mr. Kerner said. The cost to build a test blockchain
application could fall to tens of thousands of dollars from
hundreds of thousands, he added.
Microsoft is one of the largest providers of public cloud
services. Its revenue in the quarter ended March 31 rose 14% from a
year earlier to $30.57 billion, with growth of 41% in its
cloud-computing businesses, which now account for almost a third of
sales.
Write to Sara Castellanos at sara.castellanos@wsj.com
(END) Dow Jones Newswires
May 02, 2019 15:53 ET (19:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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