Bank of America, the American multinational investment bank and financial services firm, is reportedly looking into crypto. Specifically, it appears that Bank of America has filed for a patent which directly references the Ripple ledger.
Bank of America explores Distributed Ledger Technology
This news comes from a relatively fresh filing on Google Patents. The patent goes in-depth on a distributed ledger technology (DLT) system, which would supposedly work as an ”interbank communication tool”.
The patent application was published on June 6th, but it has been in the works since 2017, according to Google Patents. Put simply, this system would allow for real-time settlements with increased communication for the transactions.
Specifically, the transactions would be communicated through a shared, decentralized ledger. This ledger would be accessible to both the banks involved with the settlement. The patent application is fairly technical in its judicial jargon, but goes on to state:
”Embodiments of the present invention provide a system operatively connected with a block chain distributed network and for using the block chain distributed network for providing aggregate tracking and threshold triggering.”
The patent clearly references Ripple DLT
Furthermore, this system would see the identity of both the payer, as well as the payee, automatically verified. As such, it would also enable more direct communications between the different institutions. This is not the first time Bank of America has been bullish on blockchain and decentralized technology.
Perhaps the most notable part of this patent application is the fact that it explicitly references Ripple DLT, and not only once. In fact, several of the patent illustrations clearly reference Ripple DLT. However, these references only extend to Ripple’s distributed ledger technology – and not Ripple’s XRP base asset.
This is not the first time that a bank has been connected to Ripple. Back in June of this year, news broke that the Thailand-based ”Siam Commercial Bank” was looking to start using Ripple’s XRP token.
This came after the bank had tweeted that an ”XRP system will be announced soon”, on June 5th. However, Siam Commercial Bank has since denied any involvement with an XRP system, despite the bank’s previous tweets.
It remains to see exactly what comes from this Bank of America patent. However, the mere fact that the patent has been filed shows that Bank of America is not against distributed ledger technology. Nonetheless, it will be interesting to follow if and when this system is implemented.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.