Canada’s largest bank, the Royal Bank of Canada (RBC), is considering deploying a cryptocurrency trading platform with several use-cases for its customers.
RBC Accounts for Cryptocurrencies
As a trading platform, users would be able to buy and sell digital assets, including cryptocurrencies like Bitcoin (BTC) and Ether (ETH). In addition, customers would be able to use their digital assets as traditional currencies, for in-store or online purchases.
While the bank had restricted cryptocurrency acquisition through its accounts in 2018, the bank seems to have switched its stance and is now looking into letting customers open bank accounts containing cryptocurrency.
This is fascinating: Last year, Royal Bank of Canada (RBC) — the largest bank here up North with $660 billion under management — restricted #Bitcoin purchases (my friend was affected).
Now, it might be on the verge of launching a cryptocurrency exchange.https://t.co/vSVCwrORmk
— Nick Chong (@_Nick_Chong) November 12, 2019
RBC, as a fully regulated financial entity, would be the first traditional bank in Canada to launch a cryptocurrency trading platform and offer digital asset accounts.
Recently, the bank has reportedly filed for four patents in Canada, as well as in the United States, offering an insight into how it would integrate digital assets into its operations.
RBC’s applications suggest it aims to address recent pitfalls cryptocurrency exchanges have fallen into – mainly weak security measures, along with private key storage as well as lack of regulation enforcement for anti-money-laundering provisions.
Infrastructure for Digital Assets
Over the past three years, RBC had filed several patents related to digital assets, cryptographic proofs as well as settlement systems. The bank had already experimented with blockchain technology when it settled payments between its Canadian and American offices 2017. It has also used the technology for identity verification of its clients.
Besides everyday trading services for cryptocurrencies, the bank has also been keen on services for tokenized assets, e.g., tokenized equities, bonds, or company stocks. According to the bank, the new technology allows for the creation of new marketplaces wherein financial instruments, representations of value, or even physical objects can be safely traded and quickly settled.
With the recent race of governments and large corporations like Mastercard or Facebook to issue or develop their own digital currencies, RBC could be one of the infrastructure providers for buying and selling the newly formed digital assets.
Images courtesy of Shutterstock, Twitter.
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