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A cryptocurrency-related patent from the Bank of America entitled ‘Real-time net settlement by distributed ledger system’ has progressed in its application status from ‘published’, to ‘pending’. 

This patent details a real-time net settlement solution that BoA is developing and how it plans to utilise blockchain technology, over 17 pages and eight diagrams.

Notable is the direct reference the bank makes to blockchain network Ripple specifically as a means of illustrating the application of this new patent-pending methodology.

Ripple, In So Many Words

The methodology covers distributed ledger and digital wallets - without mentioning any specific cryptocurrency, however the Ripple blockchain network is used for a use-case scenario illustrated in Figure 6.

Bank of America states that it recognises a requirement in the banking sector for an improved settlement solution for transactions between partner institutions for customer payments.

To achieve this, BoA claims that a “flexible and cost effective accounting treatment” system is required - to be accomplished using a distributed ledger based approach. Two more essential components cited are "aggregate tracking and threshold triggering".

Emily Chang spoke to Ripple CEO Brad Garlinghouse on ‘Bloomberg Technology’ (07/22/2019) to ask about the patent application. Garlinghouse's response was,

“I saw that… I can neither confirm nor kill [the rumor]... and I too was surprised by that patent application, as we have not announced anything…

““I think we are widely known to be working with a lot of banks around the world - and certainly some of the largest banks in the world are already customers of ours today. We’ll continue working with big banks around the world”

It's Not The First, Nor Will It Be The Last

Brandon Matthew Catagna and Berthe Anne Warner are the two named authors of this patent. Whilst it’s the first to be attributed to Warner, Castagna is associated with approximately 15 submissions on Google Patents that have been filed on behalf of Bank of America.

‘Real-time net settlement by distributed ledger system’ is actually not the first blockchain or cryptocurrency related patent filed by BoA and / or Brandon Matthew Catagna. In fact, it accomplished its pending-status in tandem with another patent that detailed related technologies.

‘System for managing a virtual private ledger and distributing workflow of authenticated transactions within a blockchain distributed network’, was also published on July 22, 2019 and features a design which uses private blockchain technology for automated control of transaction “workflow” - as well as for “efficient” record keeping via virtual ledgers.

Ripple vs Xoom

Interest in international remittance focused technology has seemingly heated up in the midst of cryptocurrencies’ increasing command of institutional interest.

Bank of America; PNC bank (which uses xCurrent) and Siam Commercial Bank (based in Thailand) are amongst the other banking institutions to adopt Ripple blockchain technology, the latter of which recently confirming it would not be using the XRP token following rumours.

PayPal has its own alternative to the likes of Ripple-based solutions in the form of Xoom, for example, which expanded its money-transfer services to 32 additional markets across Europe last week. 

The new Xoom European customers follow the addition of Canadians back in late 2018. Both of whom can now send international payments to over 130 markets. The benefit to customers is far lower costs for sending funds internationally compared to when sent directly from PayPal.

Neither prices nor speed of Zoom come close to the likes of Ripple however, or even MoneyGram (the latter of which Ripple invested $50 million into just last month).
 

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