Bank of America files patent for new Ripple-based remittance system

21 Jul, 2019
by David Robb
News
Bank of America files patent for new Ripple-based remittance system

The Bank of America recently filed a patent for a new remittance system. It described a Distributed Ledger Technology (DLT) system that is compared to that offered by Ripple.

This isn't the first time that the Bank of America has given indications of moving towards blockchain-based solutions to many of its financial services. A number of patents in this field were filed towards the end of 2018, including a crypto storage system.

According to the filing, the current system for remittances makes use of "nostro accounts, which are expensive to own and manage, and funding such accounts can place a strain on liquidity. Therefore, a need for a flexible and cost effective accounting treatment and system for implementing the same are needed".

It explains the basics of blockchain technology, and how it would apply to this specific use case: "Embodiments receive, at a node of a blockchain distributed network, a transaction record associated with a transaction between a payor and a payee; accesses a distributed ledger; determines, from the distributed ledger, a net position between the entity and a third party".

Ripple's own settlement scheme is used as an example, in a figure illustrating the description. No mention is made of the specific product, although it appears to be based on the xRapid system. The Ripple-based crypto XRP is also not mentioned at all in the patent.

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Read more about: Ripple (XRP)

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