Bank of America Patents Automated Crypto Exchange System

Bank of America has obtained a patent for a system which allows the automated conversion between different cryptocurrencies. The service will be available to enterprise clients.

Bank of America, the second-largest US bank, may provide its clients with a special service allowing the automatic exchange from one cryptocurrency to another. This is evidenced by a patent the company has just been awarded by the US Patent and Trademark Office.

The application describes a system focused on cryptocurrency exchange, which allows the conversion of one digital coin into another in automated mode. The exchange rate for two cryptocurrencies will be set on the basis of external data, probably by averaging the values established by major crypto exchanges.

The system consists of three parts: a client account and two “float accounts” owned by the businesses managing the system. The first account is used by the client to store the cryptocurrency, and once it sends a conversion request, the funds would be moved to the second account. Called a “float account,” the latter would act as a holding area for the crypto funds the client is trying to sell.

The third one, also a “float account,” is meant to store the equivalent of the cryptocurrency into which the client is looking to exchange his/her funds. When the transaction is completed, the third account would deposit the funds into the customer’s account.

The background section of patent document states:

“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.”

The document also states that the service will be available to enterprise clients only. The authors claim that the system will anticipate and block illegal transactions and will be able to create a risk score.

Bank of America has been especially active in exploring the potential of blockchain. Since 2015, it has filed at least 40 blockchain-related patents, which is a record among US corporations.