Bank of America Holds Official Rights to store Clients’ Crypto Holdings in Enterprise Accounts

On Nov. 13, U.S Patent and Trademark Office (USPTO) published an official license to the Bank of America & the bank is now patented for a system for enterprises to store customers’ crypto deposits.

The patent outlines the background to the invention by stating that “as technology advances, financial transactions involving cryptocurrency have become more common”. The patent was first filed in mid-June 2014.

Bank of America has the rights now to differentiate interactions between customers’ crypto holdings and an enterprise account with the latter functioning to securely store crypto deposits. All the transactions on customers’ behalf , whether its debiting or crediting the customer accounts in question as appropriate,  can be taken by the enterprise accounts on their own as it was proposed in one set up.

The patent also covers methods for generating “vault keys”, for storage , storing private keys associated with customer’s accounts and determining public keys.

The patent will simplify the purchase and exchange of currencies and cryptocurrencies & will reduce the fees associated with it. In other examples, the patent suggests that the need for the enterprise’s customers to use third party exchange to convert currency can be nullified by aggregating customer crypto deposits in an enterprise account.

In order to achieve this end, the filing outlines an example where a third party cryptocurrency exchange server can be communicated over a network with an enterprise cryptocurrency server. (giving Bitstamp and OK Coin as examples).

The other benefits of this document is that it can determine an optimal exchange rate and initiate an “essential simultaneous” conversion as it deals with tackling crypto – fiat conversions, outlining that the system would be able to “determine a plurality of exchange rates associated with converting the first currency into the second currency.

It also maintains a publicly critical stance towards decentralized crypto assets such as Bitcoin(BTC). Earlier more than 50 blockchain and cryptocurrency related patents to date has been filed by Bank of America.

Bank of America on Oct. 30, received crypto- related patent award. Methods like referenced storage for private keys with the perspective that current systems ensures that they remain untampered and secured.