Support for the fintech innovation company R3 CEV's blockchain or distributed ledger consortium appears to be waning.

The consortium is in the process of developing a platform for letter of credit (L/C) transactions based on blockchain or distributed ledger solutions.

Reasons for leaving

US based multinational Goldman Sachs and Banco Santander of Spain have already exited the consortium while Morgan Stanley is reportedly ready to do the same.

Reports suggest that Goldman Sachs decided to leave the consortium after failing to reach agreement on the terms of a potential fundraising arrangement. Santander's reasons for leaving are not clear.

Other players

However, both banks are investors in Digital Asset Holdings, a competing blockchain fintech startup led by former J P Morgan executive, Blythe Masters.

Media reports suggest that Morgan Stanley is also set to quit the consortium, which has dropped the amount it wanted to raise from its members in its first large round of equity funding to US$150 million from US$200 million.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.