Bank of America Wins Patent, can store client’s cryptocurrency in Enterprise Holdings

“For some enterprises, it may be desirable to aggregate cryptocurrency deposited by customers in an enterprise account.”

Bank of America has won a patent for a system in which enterprises can store their customers’ cryptocurrency deposits, according to a report published by the U.S. Patent and Trademark Office (USPTO) on November 13.

The patent was first filed in mid-June 2014 and outlines the background of the invention, stating the advancement in technology leading to financial transactions involving cryptocurrency becoming more common.

Different interactions between the customers’ crypto holdings along with an enterprise account are outlined in the patent. The enterprise accounts will function to securely store (or ‘aggregate’) the customers’ cryptocurrency deposits. In a proposed setup, the enterprise account would be able to conduct transactions on customers’ behalf, – debiting or crediting the customer accounts in question.

The patent outlines methods for storing private keys associated with customer accounts, determining public keys and generating ‘vault’ keys’ for storage.

As suggested by the patent, in other instances – the need for the enterprise’s customers to use a third-party exchange for converting cryptocurrencies would be ‘negated’ as a result of aggregating customer cryptocurrency deposits in an enterprise. This would ‘simplify the purchase and exchange of currencies and cryptocurrencies and reduce the fees associated with doing so.’

The filing, to achieve this end, outlines an example in which communications over a network with a third-party cryptocurrency exchange server could be carried out by an enterprise cryptocurrency server.

Tackling crypto-to-fiat (and vice versa) conversations are also dealt with in the document. It outlines that the system would be able to ‘determine a plurality of exchange rates associated with converting one currency into another, along with determining an optimal exchange rate’. This would facilitate an ‘essentially simultaneous’ conversion.

In a previous report by Coin Telegraph, Bank of America filed over 50 blockchain and cryptocurrency related patents to date, even as it maintains a publicly critical stance towards decentralized crypto-assets like Bitcoin (BTC).

The most recent crypto-related patent award was received by the bank on October 30. It referenced storage methods for private keys, keeping in perspective the current systems for ensuring that they remain untampered.

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Written by MoneyNet

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