Ex-Deloitte Executive to Raise $150 Million to Build “Ethereum of Supply Chain”
Eric Piscini, the brains behind Deloitte’s blockchain prowess, has left the company. Currently boasting 1,200 employees, and starting with just three, Piscini was instrumental in scaling the blockchain operation to $50 million. Now, he has stepped down and decided to travel a different road.
A Bright Future
As per a report on May 14, 2018, Piscini was frequently approached and enticed by Deloitte’s clients to join their firms and bring his blockchain expertise on a full-time basis to their table. Ultimately, the in-demand blockchain executive chose U.S.-based Citizens Reserve, which plans to fuse two blockchains, Ethereum and JPMorgan Chase’s Quorum, to create a worldwide supply chain network.
Talking about the use of two blockchains, Piscini said:
“The private blockchain is more for supply chain transactions, and the public blockchain is used for payments. There is a bridge that we created that is kind of our secret sauce.”
Early-stage startup Citizen Reserve offers a shared database platform and makes each level of a supply chain, from manufacturers to retailers, available to users. To access the blockchain, and to facilitate seamless cross-border and internal transactions, a cryptocurrency based on the ERC20 Ethereum token standard, called “Zerv,” will be issued to all users. Additionally, Zerv will also be backed by real-world assets.
As per the report, these tokens shall be assigned a guaranteed value of $0.01 and will be issued in three phases as opposed to the conventional ICOs. The principal stages include traditional fundraising, ICO, and an IPO. Piscini explains:
“We don’t give away equity in the company. That’s not where the value is going to be created. The value is going to be created at the token level, not at the equity level of the company.”
Token Economy Carefully Chalked Out
Piscini aims at restricting the involvement of speculators while keeping the token lucrative. It is, however, a struggle to separate these tokens from being termed as “securities,” as the firm would invest 85 percent of the funds raised into unspecified assets.
Piscini believes that this investment will fix the price of the token and, in return, help with his original aim of dissuading speculators.
Finally, 30 percent of the total raised funds would be deployed to assure the building of a supply-chain platform, which Piscini expects to turn into a broad, self-sustaining ecosystem.
While Piscini declined to share the names of his early potential consortium members, he says Citizens Reserve is working with three companies. Further to that, each firm is reportedly providing the defense industry a centralized software-based supply chain and are also looking to “tokenize their platform.” Piscini continued in the following:
“We have decided to start with the defense industry because we have relationships with key participants in the defense industry, and it’s a very broken supply chain across the globe.”
Citizens Reserve is expected to launch in July 2018, and they could not have wished for a better time, as the U.S. defense industry looks primed for an explosion after an extended period of monetary cuts. Earlier in 2018, U.S. president Donald Trump announced his plans to allocate $716 billion in 2019 to strengthen and modernize America’s armed forces.
With this in mind, it is understandable why Citizens Reserve is going after such a niche target audience.