Canada’s major bank decides to step into blockchain and cryptocurrency to explore new avenues

Mainstream institutions jumping on the cryptocurrency bandwagon has become a norm as most of them have realized the benefits of a decentralized ecosystem. The latest organization to consider crypto and blockchain is the largest bank in Canada, the Royal Bank of Canada [RBC].

The institution, which deals with $965 billion worth of assets, has claimed that bringing in technologies like blockchain will help to improve the scalability of the financial industry as well as streamline it.

Jean Francois Thibault, the spokesperson for the RBC, stated that the bank has a patent for proprietary applications and technologies. The trading platform recommended by the company would facilitate the buying and selling of individual digital coins, including Ethereum, Bitcoin, and several other combinations of cryptocurrency trade.

A patent filed by the bank read:

“To individual users, managing cryptographic keys and transacting with different cryptographic assets can be a challenge. In some situations, cryptographic asset transactions may take time to be confirmed, and/or may not be compatible or supported by merchant systems or point-of-sale devices.”

Marc Kaufman, a Washington DC-based partner at Rimon Law, assessed the industry and stated no other banks across the planet have a direct plan to set up its own cryptocurrency exchange.

The bank has not only filed for patents in its native land but also in the United States in a bid to assert its dominance in the cryptocurrency field. The Rimon Law partner added that the latest move by RBC would make tokenized assets more accessible, just like how mutual funds make stocks more accessible. Marc Kaufman said:

“I would, and you would, and I think RBC would feel more comfortable exchanging a state-backed coin from China or Canada than Bitcoin.”

The RBC’s entry into the world of digital assets has been no secret as its CEO David McKay had revealed earlier that the bank was experimenting with blockchain for tokenization. The original plan was to take an asset or even a company and create a unit on a decentralized blockchain and then sell it into the marketplace. The company works with the idea of taking assets that are less liquid and make them more fluid.

This is not RBC’s first stint with blockchain technology, as the bank has used it multiple times in the past. The bank had made news in 2017 when it decided to move capital between its American and Canadian branches using blockchain technology. This May, the bank also claimed that it was using blockchain to verify the legitimate identities of clients.

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