Dec 19 Goldman Sachs Group Inc, JPMorgan
Chase & Co and a group of other financial institutions
including inter-dealer broker ICAP Plc's venture arm
are finalizing an investment in blockchain startup Axoni, people
familiar with the deal said this week.
The investment will be in a range of $15 million to $20
million, one of the people said. It is expected to be announced
this week, said the sources, who spoke on the condition of
anonymity because they were not authorized to speak publicly.
A representative for Axoni declined to comment on the record
when reached by phone.
The Axoni deal represents the latest Wall Street effort to
gain traction with blockchain, which first emerged as the system
underpinning digital currency bitcoin. The technology creates a
shared electronic ledger that allows all parties to track
information through a secure network, with no need for
Wall Street is betting blockchain and similar tools can be
used to help slash some of their transaction processing and
Axoni is a New York-based technology company that helps
banks and other institutions develop blockchain software to run
capital markets processes.
Over the past six months, it has run a number of
high-profile experiments with some of the financial industry's
largest players, in areas such as post-trade processing of
credit default swaps and foreign exchange.
The Axoni investment comes a month after rival blockchain
company R3 CEV reduced the amount it is aiming to raise in a new
funding round to $150 million from $200 million.
In February, Goldman Sachs and JPMorgan were among the
investors in a $60 million funding round in Digital Asset
Holdings, a New York-based blockchain startup run by former
JPMorgan commodities chief Blythe Masters.
In October, Axoni announced that nine firms including
Barclays Plc, Credit Suisse Group AG and
JPMorgan had conducted a successful test using its
blockchain-based software on post-trade processing of
over-the-counter-swaps. The group also included Thomson Reuters
Corp, the parent company of Reuters.
Earlier in the year, Axoni worked with ICAP to test a
blockchain service for foreign exchange and with another group
of firms to run post-trade processing for credit default swaps.
(Reporting by Olivia Oran and Anna Irrera in New York; Editing
by Lisa Shumaker and Bill Rigby)