Wells Fargo, US financial institution has announced officially the institution filed a patent for a “blockchain-based system and methods to manage a tokenization manifest.”
The blockchain based system would create a pathway to provide tokenized representation of any sort of value. In other words, token could be used to effect fund transfers and also, creating bank accounts numbers.
Wells Fargo intends to develop and deploy a bank-run “Tokenization Service Provider” that could tokenize pieces of information–documents, photographs, video, audio, and other pieces of digital media. Content owners submit the pieces of media, and the bank creates a token. Isn’t that awesome.
Wells Fargo plans is to create tokenization that could make “Sensitive Data” Easier to Store, Manage, and Protect. The believe is that the nature of blockchain could be used to store sensitive information and secure them.
Fargo further explained the idea is to use encryption methods to prevent access to data unless decrypted by a user with access code. In this view, the system could be used to secure sensitive data.
Additionally, the patented system would allow multiple authorized entities to access a piece of tokenized information. “Unlike the limited, anonymous signatures supported by existing systems, this tokenization manifest supports single signers, multiple signers, or co-signers to store information publicly without loss of confidentiality of any sensitive content,” reads the document.
The Circle co-founder and CEO Jeremy Allaire last month said at MoneyConf Dublin that the world is “at the beginning of a tokenization of everything…every form of value storage and public record.”
Blockchain adoption have continued to progress especially from the financial institutions. Study shows 90% of world financial institutions have shown interest to use blockchain to solve several challenges facing the banking industry.
Recently, Santander bank announced plans to establish digital investment banking unit using Blockchain technology.
Also, Hong Kong apex Bank on July 16 stated plans to test out blockchain-based trade finance platform as reported by Financial Times Media. The apex Bank stated plans to linked 21 different banks including include HSBC and Standard Chartered Banks in the platform.
Therefore, Wells Fargo is not the first major financial institution to file a blockchain-related patent, and it certainly won’t be the last. Report in January found that Bank of America had filed at least 40 blockchain-related patents. Mastercard has obtained many blockchain patents.
This is coming after the giant financial institution on June banned its customers from using the bank issued cards to purchase bitcoins or any other Cryptocurrencies.
Wells Fargo was on April sued by Bitfinex trading exchange for restrictions on account of the exchange thereby preventing the exchange from carrying out transactions.