The second-largest bank in the U.S., Bank of America (BofA), has obtained another crypto-related patent on the development of a secure cryptography key storage system, according to a document published by the U.S. Patent and Trademarks Office (USPTO).
The patent describes a system of securely storing private keys when dealing with cryptocurrency-related transactions with a special mention for institutional organizations. In short, the device offers a system of data security for blockchain networks by implementing encryption and linking data units to the blocks of a certain blockchain.
The bank envisions a future in which digital assets are widely adopted by the general public but that consumers still entrust their assets to custodians such as banks rather than maintaining their own 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.”
Along with corporate giants such as Walmart and IBM, Bank of America has been among the United States’ most prolific investors in blockchain research. The firm has applied for dozens of blockchain patents over the years, including quite a few that involve cryptocurrency in some capacity.
Besides its online vault storage system, the bank also applied for a patent for a cold storage system, as well as systems which would facilitate cryptocurrency payments and real-time conversion.
While Bank of America is one of the leading companies promoting innovation in the blockchain sphere, the bank is still skeptical towards cryptocurrencies. In May, Bank of America reiterated its restrained stance toward crypto, calling it “troubling” and confirming its decision to ban clients from buying crypto with their credit cards.
Furthermore Catherine Bessant, CTO at the bank stated their reservations in this regard, but willing to stay in line with the most recent developments:
“While we’ve not found large-scale opportunities, we want to be ahead of it, we want to be prepared.”
Earlier this year, the bank had told U.S. regulators that it may be “unable” to compete with the growing use of cryptocurrency, claiming that failing to adapt “services and products to evolving industry standards and consumer preferences” can negatively affect its activity.