R3, Early Blockchain Pioneer, Explores Sale Amid Industry Evolution

Enterprise blockchain company R3, once a darling of the banking industry, is exploring strategic options including a potential sale, according to Bloomberg. The New York-based firm, backed by prominent investors including Intel and Bank of America, has been engaging in preliminary discussions with several blockchain players over the past six months.

Sources familiar with the matter revealed that R3 has held talks with Ava Labs, the Solana Foundation, and Adhara about various possibilities, ranging from establishing a joint venture to selling a minority stake or completing a full sale of the company.

Founded in 2014, R3 emerged as one of the earliest blockchain initiatives targeting the financial sector, initially forming a consortium that attracted over 70 banking members. The company later raised $122 million in 2018 from more than 40 institutions, including Barclays, UBS Group, and Wells Fargo, marking one of the largest blockchain funding rounds at the time.

Despite some success with its Corda blockchain technology, which powers platforms like the Swiss digital stock exchange SDX, R3 has faced challenges in recent years. The company reduced its workforce by approximately 20% in September 2023, reflecting broader industry headwinds. Current employee numbers stand between 200 and 250, according to Bloomberg’s sources.

R3’s strategic exploration comes at a time when traditional finance continues to show interest in blockchain technology, particularly in asset tokenization. However, the company’s journey highlights the complex evolution of enterprise blockchain adoption, as several early consortium members, including JPMorgan Chase, eventually departed to develop their own blockchain solutions.