Bank of America seems to be seeing significant potential in the cryptocurrency market. Recently, the Charlotte, NC based bank has filed a patent application for a system that manages the storage of cryptocurrencies for institutions.
Since 2014, Bank of America has been working on an online crypto custody system. This newest patent is a continuation of that proposal. This time, the firm details how a computing device would work with blockchain encryption tags. This patent details a future where cryptocurrency achieves wide stream adoption, but consumers still keep their crypto funds with banks. The patent hypothesizes that consumer will still want to keep their funds with banks since they will not want to be fully responsible for their private keys.
“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 securely store cryptocurrency.”
Bank of America is the second-largest banking institution in the United States and is one of the largest investors in blockchain research. This most recent patent is just one of dozens that the firm has applied for. These include patents for cold storage solutions and crypto trading solutions.
Like most banks, Bank of America has stated that cryptocurrency adoption threatens its business model. Bank of America does not allow its customers to use their credit cards to purchase cryptocurrencies. Nevertheless, the bank is clearly getting itself ready for a future where it has to deal with crypto.
