Adoption: Bank Of America Set To Develop A Payment System Based On Ripple’s DLT

Is Ripple The Perfect Bridge Between Banks And Crypto?

Ripple has been bagging huge partnerships this year and therefore gaining a lot of traction. Today, it has come to light that one of the largest banks in the US, Bank of America filed a patent application for a distributed ledger system for interbank communications based on Ripple’s distributed ledger technology (DLT). This patent seems to have been filed on June 6th and is titled “Real-time Net Settlement by Distributed Ledger System.”

The Patent Application Is Pending Approval

The Bank of America is one of the world’s leading banks that are at the cutting edge of adoption of cryptocurrency and blockchain technology with similar patents applications successfully obtained. If you can recall, in 2018, the Bank of America won a patent for blockchain use in data storage technologies.  

The patent in question today was filed by the Bank of America Corp itself but is pending approval from the US Patent and Trademark Office. Once approved, the bank will then go ahead to launch this system. 

The abstract of the patent application reads, “Embodiments of the present invention provide a system operatively connected with a blockchain distributed network and for using the blockchain distributed network for providing aggregate tracking and threshold triggering.”

According to the patent application, the system will be utilized for interbank communications to enable real-time settlements where the participating banks will be granted access to a decentralized ledger where all transactions will be sent. This decentralized ledger system will be vital in verifying the identity of the payer and payee in the various transactions before permitting the institutions to communicate.

No Mention of Ripple’s Token XRP

The patent application entails a couple of visual images that further detail the distributed ledger system that the Bank of America intends to develop. These visual illustrations mention Ripple DLT on multiple occasions. However, throughout the application, there is not a single mention of Ripple’s XRP which is used by Ripple to foster cross-border transactions via xRapid. 

Nonetheless, news of this patent excites the XRP community as an agreement between Ripple and Bank of America would influence the course of Ripple’s XRP. One XRP enthusiast by the name Dillon tweeted the news, noting the use of Ripple’s DLT by the Bank of America according to the patent application.

Ripple’s Crowning Achievement

It is still unclear whether there is a collaboration coming up between Bank of America and Ripple following a recent incidence in June where the largest commercial bank in Thailand, Siam Commercial Bank (SCB), made a complete U-turn on a previous announcement where they had indicated plans to develop a system using XRP.

But if Bank of America is truly in plans to launch a payment system based on Ripple’s DLT, this will undoubtedly be a feather in Ripple’s cap and by extension, good news for XRP.

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