R3 Clears The Air On Bankruptcy, Say They Are In A Strong Financial Position
CEO of R3, David E. Rutter was pushed into issuing an official statement in response to recent rumors on the blockchain initiative’s alleged financial troubles.
In the R3 blog, the CEO said that the firm has raised more than $120 million over multiple funding rounds, is in a “very strong financial position.” In his words,
“R3 is in a very strong financial position. We have the widest and largest funding base in the enterprise blockchain space, having raised more than USD 120 million from more than 45 institutions and brought in over USD 20 million in revenue.”
However, earlier Fortune had reported that R3 has struggled to turn a profit or even develop a viable business model, even as it has seen high-profile institutions such as Goldman Sachs, JPMorgan, and Santander exit its banking consortium. The report cited anonymous former employees who said that R3’s revenue has been “laughably off” targets and that people at the company expect to be out of money by the first quarter of 2019.
Formed in 2015, R3 blockchain consortium has grown a too broad ecosystem of more than 200 members and partners across multiple industries from both the private and public sectors. It includes the likes of Microsoft, Intel, Credit Suisse, BNP Paribas, Citibank, Thomson Reuters, Oracle, and others.
Their blockchain platform Corda is already being used across industries – from healthcare to shipping, insurance and more. Rutter said that new and innovative CorDapps being released into different industries every week. To that end, he pointed out that Finastra and Tradewind Markets have built apps that are already live on the platform. Also, Maersk recently deployed a CorDapp for marine insurance built by EY, Guardtime, and others
The firm is currently involved in a lawsuit with Ripple which is the fallout of a failed partnership between the two entities. This lawsuit is significant because it involves the right to purchase XRP at a rate far below the current market price.