R3 explores new strategies amid blockchain sector hurdles

Enterprise blockchain provider R3 is exploring new strategic directions in response to ongoing challenges within the industry. 

According to sources cited by Bloomberg, R3 has been considering its options for at least six months and has held preliminary discussions with Ava Labs, the Solana Foundation, and Adhara. 

The talks involve potential paths such as forming a joint venture, selling a minority stake, or pursuing a full sale of the company. 

R3’s primary product, Corda, is an open, permissioned blockchain adopted by financial institutions including the Swiss digital stock exchange SDX, fintech firm Hqlax, and Japan’s financial services company SBI. 

Corda has also been involved in research initiatives with the Bank for International Settlements (BIS), SWIFT, and various central banks. 

Launched in 2019, Corda incorporated XinFin’s XDC token as its settlement coin in 2021. 

In June 2023, R3 partnered with Adhara, a payment solutions provider, to establish a Hyperledger Lab focused on developing interoperability solutions. 

This collaboration aligns with ongoing discussions between R3 and Adhara regarding strategic partnerships. 

Despite its advancements, R3 has faced financial pressures. 

In September 2023, the company reduced its workforce by 20%, reflecting cost-cutting measures seen across the blockchain sector. 

Reports indicate that R3 currently employs between 200 and 250 staff members. 

Founded in 2014 as a consortium of nine banks, R3 expanded its membership significantly over time. 

However, in 2016, the company began encountering setbacks, including the departure of key members like JPMorgan Chase, which later developed its own blockchain platform. 

In 2018, R3 raised $122 million from investors, including Barclays, UBS, and Wells Fargo, and briefly explored the possibility of an initial public offering.