The second-largest bank in the United States, Bank of America, has filed a new patent application for a blockchain-based system designed to securely store cryptocurrency-related data for enterprises. This move highlights the growing institutional interest in leveraging blockchain technology—not for direct cryptocurrency investment, but for enhancing data security and transaction traceability in digital finance.
According to a patent document published by the United States Patent and Trademark Office (USPTO) on August 23, the financial giant has proposed an innovative approach to safeguarding sensitive transaction records using encrypted blockchain tags. While Bank of America maintains a cautious public stance toward cryptocurrencies like Bitcoin, its persistent innovation in blockchain infrastructure suggests a strategic long-term vision focused on digital transformation.
What Is the Blockchain Encryption Tags System?
The newly filed patent, titled "Block Chain Encryption Tags", outlines a system that enables enterprises to record and store data related to cryptocurrency transactions in a secure and tamper-resistant manner. Unlike traditional cryptocurrency wallets or exchanges, this system does not involve holding digital assets directly. Instead, it focuses on securing metadata—information about transactions—through advanced encryption and blockchain anchoring.
At its core, the system works by encrypting data units and linking them to specific blocks within a blockchain network. This creates an immutable audit trail that enhances data integrity and transparency. The process begins when a processor receives a set of data elements. Before storing these elements in the first block of a blockchain, the system generates an encryption key.
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This key is then mapped with a generated encryption element diagram to produce a "creator tag"—a unique digital fingerprint that is embedded into the initial block of the chain. Once published on the blockchain, this tag serves as verifiable proof of origin and authenticity, making it extremely difficult for malicious actors to alter or forge transaction records.
Building on Past Innovations
Interestingly, this latest patent application closely mirrors an earlier filing submitted by James G. Ronca in 2014, titled "Cryptocurrency Online Vault Storage System." That original proposal laid the groundwork for secure digital vaults capable of managing cryptocurrency access and storage through multi-layered authentication protocols.
By revisiting and refining past concepts, Bank of America demonstrates a methodical approach to intellectual property development in the blockchain space. Rather than chasing trends, the bank appears to be constructing a comprehensive suite of tools designed to support future financial systems—whether they are fully decentralized or hybrid in nature.
As of June 2018, Bank of America had already filed nearly 50 blockchain-related patents, positioning itself as one of the top corporate holders of such intellectual property worldwide—surpassing even tech behemoths like IBM. This aggressive patent strategy underscores the bank’s commitment to staying at the forefront of financial technology innovation, even as it remains publicly skeptical of speculative crypto assets.
A Contradictory Stance: Innovation vs. Caution
Despite its extensive blockchain research and development efforts, Bank of America has maintained a notably conservative position regarding cryptocurrency adoption. In May, the bank’s Chief Technology Officer reiterated that Bitcoin is “troubling,” reaffirming the institution’s ban on using credit cards to purchase digital currencies.
This contradiction—filing numerous blockchain patents while discouraging retail crypto engagement—is not uncommon among major financial institutions. The distinction lies in separating the underlying technology (blockchain) from the asset class (cryptocurrencies). For banks, blockchain offers solutions for fraud prevention, cross-border payments, identity verification, and regulatory compliance—areas where efficiency and trust are paramount.
Yet, in early 2025, the bank acknowledged a critical vulnerability: its inability to adapt could hinder competitiveness in a crypto-driven financial landscape. In filings with U.S. regulators, executives warned that failing to align services with evolving industry standards and shifting consumer preferences might negatively impact their market position.
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This admission signals a growing awareness that decentralization and digital assets are no longer fringe phenomena—they are becoming integral components of global finance.
Why This Matters for Enterprise Security
The implications of Bank of America’s encrypted blockchain system extend beyond internal operations. Enterprises across sectors—from supply chain management to healthcare and legal services—face increasing pressure to protect sensitive data from cyber threats. Traditional databases are vulnerable to tampering and unauthorized access, whereas blockchain-based systems offer cryptographic verification and decentralized consensus mechanisms.
By embedding encrypted creator tags into immutable ledgers, organizations can:
- Verify the authenticity of digital records
- Prevent data manipulation after entry
- Streamline auditing processes
- Enhance compliance with regulations like GDPR or HIPAA
Moreover, because each tag is tied to a specific block and timestamped, disputes over data ownership or modification timelines can be resolved more efficiently.
Frequently Asked Questions (FAQ)
Q: Does this mean Bank of America is launching its own cryptocurrency?
A: No. The patent describes a data security system, not a digital currency. The bank continues to refrain from issuing or endorsing any cryptocurrencies.
Q: How is blockchain different from cryptocurrency?
A: Blockchain is the underlying technology—a distributed ledger that records transactions securely. Cryptocurrency is just one application of blockchain; others include smart contracts, supply tracking, and identity management.
Q: Can other companies use this system?
A: Not unless licensed. As a patent holder, Bank of America owns exclusive rights to develop or commercialize the technology unless it chooses to license it to third parties.
Q: Is this system already in use?
A: There is no public evidence yet that the system has been deployed. Most of Bank of America’s blockchain patents remain in the research or development phase.
Q: Could this lead to better crypto banking services in the future?
A: Potentially. By mastering secure data handling through blockchain, banks may eventually offer regulated crypto custody, trading, or integration services under strict compliance frameworks.
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Core Keywords
- Blockchain patent
- Encrypted cryptocurrency storage
- Bank of America blockchain
- Data security system
- Creator tag encryption
- Enterprise blockchain solution
- Immutable transaction ledger
- Cryptographic verification
Final Thoughts
Bank of America’s latest patent application reflects a broader trend: traditional financial institutions embracing blockchain not as a threat, but as a tool for resilience and innovation. While the bank remains cautious about direct exposure to volatile digital assets, its investment in secure infrastructure suggests preparation for a future where blockchain plays a central role in global finance.
As consumer demand for transparency and security grows, solutions like encrypted blockchain tags could become standard practice across industries. For now, Bank of America continues building its technological moat—one patent at a time.