In a patent awarded by the U.S. Patent and Trademark Office on Tuesday, the second-largest bank in the U.S. 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.
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 second account, referred to as a “float account,” would act as a holding area for the cryptocurrency the customer is selling, while the third account, also a float account, would contain the equivalent amount of the cryptocurrency the customer is converting their funds to.
That third account would then deposit the converted funds back into the original customer account for withdrawal.
The proposed system would collect data from external information sources on cryptocurrency exchange rates, and use this data to establish its own optimal rate…