Bank of America invents a crypto storage device

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Bank of America crypto

The Bank of America has been awarded a patent for a device for ‘hardened remote storage’ of private crypto keys, a US patent document has revealed.

The patent award released yesterday, October 30, has sparked speculation the second biggest bank in the US could be planning a move into cryptocurrencies.

“In specific embodiments of the system, the authentication routine is conducted as part of a crypto-currency transaction, a blockchain transaction or the like,” states the patent document.

The document mentions cryptocurrency and blockchain several times.

“The key generator routine 218 may employ a hierarchical deterministic chain approach, such that an initial private cryptography key (i.e., a seed) is generated and all subsequently generated keys are derived (using, for example, BIP32 features or the like) from the seed.

“Specific transactions that rely on the private cryptography key 208 for authentication (e.g., crypto-currency, public ledger/blockchain and the like), require a different private cryptography key for each transaction since, for anonymity purposes, the wallet address changes each time a transaction occurs.

“In those embodiments of the invention in which the key generator routine 208 implements the hierarchical deterministic chain approach, only the initial/first private cryptography key needs to be stored in backed-up storage (in case the storage device is lost or stolen as discussed in more detail infra.)”

While The Bank of America has been cynical of cryptocurrencies, it has been a leader in blockchain development, filing a large number of patents for inventions related to the technology over the past 3 years.

The Bank of America crypto storage patent, awarded yesterday, was first lodged in September 2016.

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