Bank of America, the second-largest bank in the U.S. has outlined a potential cryptocurrency exchange system that would convert one digital currency into another. Further, this system would be automated, establishing the exchange rate between the two currencies based on external data feeds, CoinDesk reported.
The patent describes a potential three-part system, where the first part would be a customer’s account and the other two would be accounts owned by the business running the system. The user would store their chosen cryptocurrency through the customer account.
The proposed system would collect data from external information sources on cryptocurrency exchange rates, and use this data to establish its own optimal rate.
The patent notes this service would be for enterprise-level customers, meaning that if the bank pursues this project, it would be offered to businesses.
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."
The proposed system could also evaluate transactions for potential illicit trades, calculating a risk score based on the amount of cryptocurrency being transferred and any other information available, according to the patent.
Transactions which look illegal would not be allowed to process, the patent says.