In a move that signaled growing institutional interest in blockchain technology, Bank of America filed a patent with the United States Patent and Trademark Office (USPTO) for a cryptocurrency-based wire transfer system. The patent, originally filed on March 17, 2014, and published on September 17, 2015, outlines a method by which electronic funds could be sent between customer accounts using the underlying blockchain of a cryptocurrency as the payment rails — effectively bypassing traditional wire transfer networks.
The filing represents one of the earliest and most detailed examples of a major U.S. bank exploring cryptocurrency technology for improving cross-border payments, an area that has long been plagued by high fees, slow settlement times, and reliance on intermediary networks.
TL;DR
- Bank of America filed a USPTO patent for a cryptocurrency-based wire transfer system, published September 17, 2015
- The system would convert fiat to cryptocurrency at one exchange, transfer it, then convert back at another exchange in a foreign currency
- The patent names bitcoin, litecoin, Ripple, and dogecoin as potential cryptocurrencies for transfers
- Authors argue the system would bypass third-party networks, reduce transfer time, and improve data security
- Transaction module would automatically select cryptocurrency and exchange based on price and volatility
How the Proposed System Works
According to the patent filing, the system would enable customer funds to be converted at a cryptocurrency exchange and then sent to a second cryptocurrency exchange to be converted into a foreign currency before being delivered to the recipient. The goal is to dramatically reduce the time and cost associated with traditional wire transfers.
The patent’s authors, Thomas Edward Durbin and James Gregory Ronca, lay out the problem clearly: “Enterprises handle a large number of foreign wire transfer requests on a daily basis. As technology advances, foreign transactions have become more common. For some customers, it may be desirable to conduct a foreign wire transfer in less time than what current foreign wire transfer systems allow.”
The system is designed to “bypass” traditional wire transfer services, which Durbin and Ronca argue would “reduce dependency on third-party networks” while “increasing the reliability of fund transfers.” By using cryptocurrency as the transport layer, the filing suggests that delays caused by relying on legacy systems and services could be avoided entirely.
Smart Currency Selection
One of the more innovative aspects of the filing is the way it envisions the method by which a cryptocurrency would be selected for each transfer. Rather than defaulting to a single cryptocurrency, the system’s transaction module would evaluate multiple options based on real-time market conditions.
“For example, transaction module 136 may choose a particular cryptocurrency exchange because the cryptocurrency is priced favorably — cheap if purchasing, expensive if selling — or because the cryptocurrency exchange has a relationship with the enterprise,” the filing reads.
The patent names bitcoin, litecoin, Ripple, and dogecoin as specific examples of cryptocurrencies that could be used, while listing OKCoin, Bitstamp, BTCC (formerly BTC China), Cryptsy, CoinMarket, and Justcoin as potential exchanges for facilitating the conversions.
Security and Privacy Advantages
Beyond speed and cost, the patent also highlights data security benefits. The filing suggests that fund transfers using cryptocurrency would reduce the need to transfer customer information to third-party systems, thereby “increasing control and security of customer data” during transactions.
A separate module within the system would handle the actual transfer of funds and manage the security aspects of each transaction. The filing indicates that buying and selling of cryptocurrency would be initiated near simultaneously to facilitate cost-effective transfers while minimizing exposure to price volatility.
The Broader Context: Banks and Blockchain in 2015
Bank of America’s patent filing came at a pivotal moment for the cryptocurrency industry. In September 2015, the CFTC had just classified bitcoin as a commodity, providing the first significant regulatory clarity for the asset class. Bitcoin was trading at approximately $227, with Ethereum still under $1 and the total crypto market cap around $3.3 billion.
While the patent did not mean Bank of America was preparing to launch a crypto wire transfer product imminently, it demonstrated that traditional financial institutions were beginning to take blockchain technology seriously as a potential infrastructure upgrade. The filing was part of a broader pattern of major banks patenting blockchain-related technologies throughout 2015 and 2016, even as many publicly expressed skepticism about cryptocurrency itself.
Why This Matters
Bank of America’s cryptocurrency wire transfer patent was an early indicator of the convergence between traditional finance and blockchain technology that would define the industry’s trajectory for years to come. The patent’s detailed technical approach — using cryptocurrency as a transport layer between fiat currencies — foreshadowed the stablecoin-based payment corridors and cross-border settlement systems that would emerge in the following decade. It also revealed that even in 2015, major banks recognized the fundamental inefficiencies in legacy wire transfer systems and saw cryptocurrency as a credible solution. The fact that Bank of America named multiple cryptocurrencies and exchanges in the filing, rather than proposing a proprietary token, suggested an openness to working with existing blockchain networks that would later become a hallmark of institutional crypto adoption.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.