MasterCard acquires a patent to bridge the gap between fiat and cryptocurrency

In a bid to dissolving existing bridge between fiat and cryptocurrency, MasterCard Inc., an American multinational financial services corporation acquired a patent which links cryptocurrency to fiat currency.

The patent, Method, and system for linkage of blockchain-based assets to fiat currency account, was filed on 21st May 2015.

Abstract of the patent acquired by MasterCard || Source: United States Patent and Trademark Office

Abstract of the patent acquired by MasterCard || Source: the United States Patent and Trademark Office

The invention provides a ‘method for managing fractional reserves of blockchain currency’. The managing fractional reserves would include:

  • Central Database
  • An account database
  • A receiving device
  • A processing device

Summary of the patent acquired by MasterCard || Source: United States Patent and Trademark Office

Summary of the patent acquired by MasterCard || Source: the United States Patent and Trademark Office

The patent includes storing both fiat currency and blockchain currency in a central account. The central account database would have multiple account profiles. These profiles would store information of consumer including the fiat currency and cryptocurrency amount stored, an account identifier and an address.

According to the patent, the receiving device will receive a payment transaction message and the message would be formatted based on single or multiple standards. This would have multiple data elements including data element reserved for private use which would have the transaction amount and a specific address.

The processing device would configure the address included in a specific account profile stored in the database and matches the specific address included in the data element in the receiving transaction message.

Further, the patent states that it would:

“update the blockchain currency amount included in the identified specific account profile based on the transaction amount included in the data element in the received transaction message.”

Seth Eisen, Mastercard’s Senior Vice President for communications told CNBC:

“We’re consistently looking at ways to bring new thinking and new innovations to market to create value for us and our customers and cardholders. Patent applications are part of that process, taking steps to protect the company’s intellectual property, whether or not the idea ever comes to market.”

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