Page 13 - July 2018 Disruption Report

DIGITAL CURRENCIES JAJNULAYRY20210818
Mastercard receives a patent for software that links cryptocurrency with fiat accounts
Mastercard has been awarded a patent that grants it rights for a method for “managing fractional reserves of blockchain currency.” According to Mastercard’s patent filing, the patent addresses a method and system for linkage of blockchain-based assets to fiat currency accounts, consisting of:
A method for managing fractional reserves of blockchain currency
includes: storing, in a first central account, a fiat amount associated with
a fiat currency; storing, in a second central account, a blockchain amount associated with a blockchain currency; storing a plurality of account profiles, each profile including a fiat currency amount, blockchain currency amount, account identifier, and address; receiving a transaction message associated with a payment transaction, the message being formatted based on one
or more standards and including a plurality of data elements, including a data element reserved for private use including a specific address and a transaction amount; identifying a specific account profile that includes the specific address included in the data element in the received transaction message; and updating 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.
Mastercard’s patent filing brings the market one step closer to allowing consumers to use cryptocurrency credit cards to purchase goods.
“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,” said Seth Eisen Mastercard’s SVP for communications. “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.”
In addition to this patent, Mastercard has obtained a number of blockchain-based solution patents, including one for anonymous blockchain transactions and blockchain travel itinerary bidding system. It is unclear, however, how Mastercard plans to implement the blockchain technology in the near future. (U.S. Patent Office, Mastercard, 07/19/18; CNN.com, 07/18/18)
Tokenizing securities on the blockchain
Daily Fintech’s Bernard Lunn wrote:
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