Bank of America continues to pursue its blockchain-related endeavors; its latest patent for a cryptocurrency exchange has been greenlit by the US Patent and Trademark Office.
On December 5, 2017, the US Patent and Trademark Office awarded a patent to Bank of America (BofA) for what might amount to a cryptocurrency exchange for corporate clients.
Originally filed on June 16, 2014, Bank of America’s patent on a “cryptocurrency transformation system” comprises a platform to manage exchange rates between various currencies, transfer requests, and customer accounts.
In BofA’s system, the customer would have one account and there would be two float accounts associated with an “enterprise.” The float accounts are designed to handle conversion from one cryptocurrency to another; customers make a deposit of the currency they intend to convert or sell into a float account and the second float account is funded with the equivalent exchange rate for new target currency. In this case, customers will be businesses, as the service is intended for enterprises as opposed to individual consumers.
According to the patent, “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.”
BofA’s system will also make use of a “risk score,” a quotient designed to mitigate illicit activity on the exchange. The risk score is based in part on factors related to the party sending the transaction, the particular cryptocurrency involved, and the amount being exchanged.
It isn’t a big shock that BofA has filed yet another blockchain-centric patent; to date, the bank has filed over 20 such patent applications, including two that are intended to address real-time tracking of data processing that overlapped in October 2017.