Under the leadership of Brian T. Moynihan who is the chairman and CEO of the Bank of America, there has been a tremendous application of patents with the United States Patent and Trademark Office. One of these patents protects the concept by the Bank of America to develop a Cryptocurrency aggregation system.
Under this new technology, the bank would be storing Cryptocurrencies in an enterprise account involving offline storage and vaults. In a rather unique way, the clients will comprise of institutions. The accounts will belong to the clients of these institutions who own Cryptocurrencies and require a safe wallet to safe-keep their deposits.
This Is The Beginning of A BoA Dealing In Cryptocurrencies
The Bank of America has been at the forefront of filing patents for Blockchain technology innovations more than any other institution. In fact, it is one of the institutions that propel the United States of America to prominence in the realm of distributed ledger technology inventions. However, this time around, the bank filed for a patent regarding Cryptocurrencies.
From 13th November 2018, the U.S. Patent and Trademark Office is recognizing the institution as the owner of this Crypto storage idea that will take over Crypto markets by a storm. The patent was presented in 2014 for consideration on the premise that Cryptocurrency-based transactions are on the rise following an ever-increasing trend of Digital payment acceptance by merchants.
The competition for Crypto wallets development will also be taken to the next level since the Bank of America will be providing vault-proof security for Crypto Assets, along with other developers such as Coinbase, Wirex Binance, Bittrex, etc.
About The New Bank of America’s System
The new Bank of America Crypto storage system comprises of a processor and a memory. The memory feature is designed for the storage of enterprise accounts and their customers’ private keys or even these institutions’ private keys if they hold Digital Assets.
On the other hand, the processor handles deposits for Cryptocurrencies such as Dogecoin, Peercoin, Ripple, Litecoin, and Bitcoin. It is also designed for matching keys to their rightful owners and determining the worth of deposits. Additionally, since customers will be using their financial institutions’ accounts to bank Crypto Assets on their behalf, the processor will be aggregating the Cryptocurrency in an enterprise account by harnessing the public key of the entity.
To enhance efficiency and convenience, the patent reveals that the new system will offer Crypto exchange services. This will ensure that there is no need for clients to seek third-party exchange services that may charge fees expose them to risk factors.
Bank Of America Will Be A Crypto Bank That Fosters Digital Assets’ Adoption
The most outstanding concern on the part of BoA is that financial institutions may charge exorbitant fees and administrative costs that may defeat the whole purpose of Cryptocurrency decentralization and peer-to-peer transactions. Nevertheless, if this concern is addressed, the system may spur unapparelled adoption of Cryptos as financial institutions participation could enhance public trust on Digital Assets.