Bank of America Files Patent for Cryptocurrency Custody System

The Bank of America has filed a patent application with the U.S. Patent and Trademarks Office (USPTO) for a secure cryptocurrency custody. According to the patent document published last week by the USPTO Bank of America (BoA) proposes to a system that will allow enterprises safely store large amounts of cryptocurrency.

Description of BoA’s Crypto Custody Patent

BoA’s patent titled “Block Chain Encryption Tags” describes a system that includes a set of encryption processes used for recording and storing data pertaining to cryptocurrency transactions. The patent stated:

“A system that includes a device with a processor is configured to receive a first set of data elements and to obtain an encryption key from a memory.”

It further explains:

“The processor is further configured to encrypt the first set of data elements using the encryption key, to embed the first set of encrypted data elements within a first block for the block chain, and to generate a first encrypted element map identifying the locations of the first set of encrypted data elements within the first block. The processor is further configured to combine the encryption key with the first encrypted element map to generate a creator tag, to encrypt the creator tag, to embed the creator tag within the first block, and to publish the first block to a block chain.”

The patent which was filed in April 2018 made reference to a similar patent filed in June 2014 by James G. Ronca under the title “Cryptocurrency Online Vault Storage System”. BoA stated that the present application is a “continuation-in-part which claims priority” over the 2014 filing and is “incorporated by reference as if reproduced in its entirety”.

The need For Tamper-Proof Cryptocurrency Custody

Bank of America, which is the second largest bank in America envisages a huge adoption of cryptocurrencies that enterprises will need safe custodial storage for large amounts of cryptocurrency. As against wallets and cold storages that use non-custodial encryption, malicious attackers can penetrate and steal cryptocurrency from several custodial services offered by exchanges without the permission of the coin owners. There lies the need for a more sophisticated storage system, probably what BoA is trying to offer.

The bank has filed several blockchain-related patents in the past including ID verifications systems, large data processing systems, real-time electronic tracking systems.

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