Blockchain company R3 is looking to raise up to $200 million from its big-bank backers as it prepares to spin out part of its business, according to people familiar with the plans.

New York-based R3 is asking members for money in return for equity stakes in a new utility that will run blockchain-powered applications for financial institutions. Discussions are still at an early stage and R3 is proposing to hold a stake in the company and run it for 10 years, one person said.