On Tuesday, Bank of America received approval for the patent to build a system that allows large institutions to hold their customers’ crypto for them in the future, provided that digital assets are adopted wider than now.
Who this is made for
The target group indicated in the patent are custodians and crypto trading companies. Some of them may need to change their customers’ deposits from a fiat currency into crypto and then store virtual tokens.
To keep their crypto deposits secure, companies might prefer to utilize a single account of an enterprise level that can store virtual currencies.
The patent says that a client of such an institution may be credited with a value equal to his/her crypto deposit. However, the funds are going to be kept in an aggregated account of the enterprise.
The patent points out that enterprises may face a great deal of financial operations every day. With DLT technology developing further, transactions with crypto are now more frequent than before, so perhaps for large fund managing companies/enterprises it will be more convenient to store all crypto belonging to their customers in an enterprise account.
In order to ensure such an account is secure, the bank’s system will have store a private key for keeping crypto deposits by means of a processor and memory. The patent also explains how this solution would serve as a storage for holdings and at the same time will be able to conduct authorized transactions.
This solution, claims the patent, will allow utilizing less memory and bandwidth. Also, it will need not as many resources in terms of electricity and computing.
In order to let clients perform operations with their funds, the system will provide access to particular customers, letting them work with their accounts. This would enable them to transact crypto directly using the account.
Recent inventions of Bank of America
In late October, the bank won another patent which allows storing private keys on a portable gadget.