Bank of America (NYSE:BAC), the second largest bank in the United States by assets, has applied for a blockchain-related patent associated with the development of new cash handling devices. The latest patent, entitled “Banking systems controlled by data bearing records,” is the latest in a string of over 50 blockchain-related patents that the bank has filed recently.
BofA on Wednesday filed with the US Patent and Trademark Office (USPTO) for “deploying, configuring, and utilizing cash handling devices to provide dynamic and adaptable operating functions.”
The latest BofA patent describes a “new cash handling device,” which is similar to an automated teller machine (ATM), that will use the blockchain technology to accelerate transaction speed, facilitate other types of transactions such as gift registry transactions, among many others.
The filing also describes a blockchain solution to track transactions, which allows the ATM to handle a larger amount of volume while reducing its physical cash transportation needs.
What Does 2021 Hold for the Markets? HYCM CEO SpeaksGo to article >>
Open to Blockchain, Skeptical Over Cryptocurrencies
The document further explains that certain transactions, including cash/check deposits or cash withdrawals, can leverage blockchain communications to support real-time request, validation, and completion of the transaction, as well as real-time reconciliation.
“In addition, any replenishment of cash into the automated teller machine or end-of-day fund transfers across various financial institutions and the ATM operator may be done via blockchain balances,” it adds.
The proposed ‘blockchain ATM’ marks the latest in a string of BofA’s investments into the technology that underpins cryptocurrencies, after it has filed over 50 related patents through September of this year. Bank of America is already the largest holder of blockchain-related patents in the United States, surpassing tech giants like Microsoft.
But while the bank is taking the lead on blockchain innovations, it has joined other lenders in seeking to distance itself from the cryptocurrency space. Specifically, BofA in February banned its clients from all cryptocurrency purchases using their credit cards.