Bank of America Now Holds Patent for Cryptocurrency Exchange System

The three-stage system will allow the customers to convert funds from one cryptocurrency to another.

The cryptocurrency market is growing day-by-day, and this exponential growth has attracted the attention of the world’s largest banks too. Many mainstream businesses are trying to develop new technologies to dominate the blockchain economy.

Bank of America (NYSE:BAC), the second largest bank in the United States by assets, is considering providing its enterprise clients with the service of the cryptocurrency exchange.

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Recently the U.S. Patent and Trademark Office has awarded a patent to the Bank of America, which the bank filled in the mid-2014. According to the outline of the patent, it is a cryptocurrency exchange system which will allow the conversion of one digital currency to another.

As described by the patent, the exchange system will have three parts, one “customer account” and two “float accounts.” As the name goes, the customer will hold the “customer account” and both the “float accounts” will be owned by the businesses running the system.

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The customer will be able to store any cryptocurrency in the “customer account.” In case of any exchange request, the desired amount will be transferred from the “customer account” to the second account, which acts as a “float account.”

The other “float account” will contain the equivalent amount of the desired cryptocurrency to which the customer is converting his funds. The “float accounts” will basically act as a holding area. After the process is complete, the third “float account” will deposit the funds into the “customer account.”

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

The patent also mentions that the proposed service is exclusively for the bank’s enterprise clients. The system will also be able to predict the illicit transactions, and will automatically block such transactions. Based on the amount of cryptocurrencies involved in the transactions, the system will also calculate a risk score.

The bank had been working on the blockchain technology for years. In July this year, Bank of America issued a call for hiring blockchain professionals for developing a blockchain based ‘Real-Time’ card settlement system.

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