The Bank of America received a patent that perfectly outlines the ability of major institutions to store cryptocurrencies, which are property of their customers.
The US Patent and Trademark Office awarded the filing on Tuesday. It contends that enterprise-level institutions may be willing to store digital currencies for their customers if they reach a state of wider adoption. That being said, the number of enterprises who deal with cryptocurrencies increases all the time.
Some enterprises only transact, while others offer a wide area of services related to digital currencies. A number of crypto exchanges and custodians may be required to convert a deposit of fiat currency into crypto to them be able to hold. That being said, in order to securely keep those funds, a business may be required to use an enterprise-level account, which is capable of storing the cryptocurrencies.
The patent is a step in the right direction
The filing states that a client’s account may be credited with an equivalent value to their crypto deposits. That being said, the funds would be stored in an aggregated enterprise account.
The patent also details that:
“Enterprises are allowed to handle a huge amount of financial transactions on a daily basis. With technological advancement, transactions involving crypto are bound to increase in popularity. For some enterprises, aggregating crypto deposited by their customers in an enterprise account will be desirable.”
The Bank of America’s system includes a processor with a huge amount of memory to store a private key for crypto holdings. The patent goes in depth describing how the system would be able to store the holdings and also facilitate transactions when authorized. The system is a large upgrade when it comes to reducing bandwidth and memory usage. Fewer computational and power resources would be required as well.
Clients will be able to conduct direct transactions with their funds. The system will guarantee access and a transaction with the crypto would be executed directly through the account. The Bank of America got another patent award last month and it hinted at a means for cryptographic key storage, including the ones tied to crypto assets.
You can also check out:
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- CCN Shutdown and The Inevitable Surrender to Google’s Power - Jun 11, 2019
- Ban Bitcoin ATMs: Money Laundering Blamed on Crypto ATMs - Jun 10, 2019
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