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, there would be one customer account and two float accounts that are 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 overlapping patents intended to address the real-time tracking of data processing that it filed as recently as October 2017.