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Bank of America Wins Patent for Crypto Exchange System

Bank of America may be looking into cryptocurrency the Big Board services for its corporate clients – or at least keeping its options open should they turn interested.

In a patent awarded by the U.S. Patent and Trademark Office on Tuesday, the second-largest bank in the U.S. outlined a dormant cryptocurrency exchange system that would convert one digital currency into another. Promote, this system would be automated, establishing the exchange rate between the two currencies based on extrinsic data feeds.

The patent describes a potential three-part system, where the beforehand part would be a customer’s account and the other two would be accounts owned by the dealing running the system. The user would store their chosen cryptocurrency from stem to stern the customer account.

The second account, referred to as a “float account,” last will and testament act as a holding area for the cryptocurrency the customer is selling, while the third account, also a pontoon account, would contain the equivalent amount of the cryptocurrency the customer is transfiguring their funds to.

That third account would then dregs the converted funds back into the original customer account for withdrawal.

The meant system would collect data from external information fountain-heads on cryptocurrency exchange rates, and use this data to establish its own optimal reprimand.

The patent notes this service would be for enterprise-level customers, explanation that if the bank pursues this project, it would be offered to proprietorships.

According to the patent:

“Enterprises may handle a large number of financial actions on a daily basis. As technology advances, financial transactions involving cryptocurrency receive become more common. For some enterprises, it may be desirable to exchange currencies and cryptocurrencies.”

The named system could also evaluate transactions for potential illicit jobs, calculating a risk score based on the amount of cryptocurrency being carried and any other information available, according to the patent.

Transactions which look wrongful would not be allowed to process, the patent says.

Bank of America has been looking into cryptocurrencies for years, arranging another patent in 2014 to create a cryptocurrency-powered wire transfer pattern.

That system would allow users to transfer funds by modifying the sender’s local currency into a cryptocurrency, sending it to a foreign tit for tat, and then converting it to the destination country’s currency.

Bank of America appearance via Rob Wilson / Shutterstock

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