BANK OF AMERICAS AND COINBASES BITCOIN PATENTS REVEALED

The world of cryptocurrency is often perceived as a decentralized, open-source haven, a stark contrast to the traditional financial institutions that have dominated the global economy for centuries. The only secret Satoshi guarded was his identity. It may come as a surprise then to learn that in the last decade, the company that has more cryptocurrency patents than any other is in many bitcoiners eyes the antithesis of everything decentralized currency stands for Bank of America. Bitcoin Patents Pile UpHowever, recent revelations regarding patent filings paint a more complex picture. The second largest US bank, and eleventh largest in the world by assets, BoA was the first large bank to talk openly about bitcoin, in December 2025, while bitcoin s price was near its all-timeFilings with the United States Patent and Trademark Office (USPTO) have brought to light a significant number of patent applications from both Coinbase, a leading cryptocurrency exchange, and Bank of America (BoA), one of the largest banks in the United States.This raises fundamental questions: Why are these entities, seemingly operating on opposite sides of the financial spectrum, so interested in patenting technologies related to Bitcoin and blockchain?What are the implications of these patents for the future of cryptocurrency innovation and adoption?And how might these patents impact the core principles of decentralization that underpin the crypto ethos? Pavel Nikienkov (@pavelravaga), co-founder and Project Manager of @zano_project, lays out a persuasive argument to BTCTN s @_dsencil for why privacy projectsIn this article, we will delve into the details of these patent filings, exploring their potential impact on the cryptocurrency landscape and the broader financial industry.

Bank of America's Extensive Bitcoin Patent Portfolio

It might surprise many staunch Bitcoin enthusiasts that Bank of America (BoA), often viewed as a symbol of traditional finance, holds a substantial number of patents related to cryptocurrency and blockchain technology.In fact, BoA appears to be the company with more cryptocurrency patents than any other entity.A simple search of the USPTO database reveals hundreds of patent applications that use the term ""Bitcoin."" This raises the question: why is Bank of America so invested in securing these patents?

Early Forays into Blockchain Technology

Bank of America's interest in blockchain technology dates back to at least March 2025, when it filed its first blockchain-related patent. Bank of America s interest in Ripple s technology goes as far back as 2025 when it filed a patent for a decentralized settlement system. The patent detailed a method for real-time interbank communication and transaction verification using distributed ledger technology (DLT).This early move demonstrates that BoA recognized the potential of distributed ledger technology (DLT) relatively early on.

Their motivations are likely multifaceted.Firstly, securing patents allows BoA to protect its own innovations in the cryptocurrency space.This means they can prevent other companies from using their patented technologies, giving BoA a competitive advantage.Secondly, these patents could potentially generate revenue through licensing agreements.Finally, the patents could be used defensively, protecting BoA from patent infringement lawsuits from other companies in the rapidly evolving crypto landscape.

One notable example of Bank of America's patent activity is their filing for a decentralized settlement system, which detailed a method for real-time interbank communication and transaction verification using DLT. Recent filings with the United States Patent and Trademark Office (USPTO) revealed a dossier of applications from Coinbase as well as a cryptocurrency filing from Bank of America. On September 17This patent, dating back to 2025, demonstrates their early recognition of blockchain's potential to streamline and improve existing financial processes, similar to technology that Ripple uses.

Specific Examples of Bank of America's Patents

While the specifics of each patent are complex and technical, some key areas of focus emerge. Paxos has added Coinbase Ventures, FTX, Bank of America, and Founders Fund as backers in its Series D funding round that started last April.These include:

• Blockchain-based data storage and validation: Patents related to securely storing and verifying data on a blockchain.
• Cryptocurrency exchange platforms: Patents covering the technology behind cryptocurrency exchanges, including order matching, security protocols, and user interfaces.
• Payment systems using cryptocurrencies: Patents focused on facilitating payments using Bitcoin and other cryptocurrencies.
• Decentralized settlement systems: As mentioned previously, patents designed to improve the efficiency and security of interbank transfers using blockchain technology.

It's important to note that holding patents doesn't necessarily mean that BoA is actively developing and deploying all of these technologies. MLPF S is a registered broker-dealer, member SIPC and a wholly owned subsidiary of Bank of America Corporation Insurance Products are offered through Merrill Lynch Life Agency Inc.(MLLA), Bank of America, N.A. and/or Bank of America Insurance Services, Inc, all of which are licensed insurance agencies and wholly-owned subsidiaries of Bank ofIn many cases, companies file patents to protect their intellectual property and explore future possibilities, even if they don't have immediate plans for implementation.

Coinbase's Patent Applications: Securing Innovation in the Exchange Space

While Bank of America's patent strategy might seem surprising, Coinbase's patent applications are perhaps more expected, given its position as a leading cryptocurrency exchange.Coinbase, being at the forefront of crypto adoption, has a vested interest in securing its innovations and protecting its market position. A recent statement from Coinbase revealed that the MCC (merchant category code) for digital currency purchases was changed by a number of the major credit card networks that allow banks and card issuers to charge additional cash advance fees which could be as high as 23.99 percent and which aren t charged or collected byThese filings often cover improvements to exchange functionality, security measures, and user experience.

Focus on Exchange Functionality and Security

Coinbase's patent applications are likely focused on enhancing the core functionalities of its exchange platform. A cursory search of USPTO database shows 289 patent applications that use the term Bitcoin. appears to be the first one, was filed Octo, and was published on Ap.This could include:

• Improved order matching algorithms: To ensure efficient and fair trading.
• Enhanced security protocols: To protect user funds and prevent fraud.
• User-friendly interfaces: To make cryptocurrency trading more accessible to a wider audience.
• Custodial solutions: For securely storing cryptocurrencies on behalf of users.

Given the inherent risks associated with cryptocurrency exchanges, security is paramount. Other examples of granted patents include a patent for a system that settles securities using a custom cryptocurrency, which was awarded to the financial giant, Goldman Sachs, and a patent for a platform to manage exchange rates between various currencies, transfer requests, and customer accounts awarded to Bank of America, a company thatCoinbase's patents likely address various security threats, such as hacking, theft, and unauthorized access. MLPF S makes available certain investment products sponsored, managed, distributed or provided by companies that are affiliates of Bank of America Corporation. Bank of America Private Bank is a division of Bank of America, N.A, Member FDIC and a wholly owned subsidiary of Bank of America Corporation.This could include innovations in multi-factor authentication, cold storage solutions, and intrusion detection systems.

The Impact of Coinbase's Patents on the Crypto Ecosystem

Coinbase's patents, while intended to protect its own innovations, could have broader implications for the cryptocurrency ecosystem. The bank filed its first blockchain-related patent back in March 2025, and it was published by the U.S. Patent and Trademark Office (USPTO) the agency that awards copyrights on inventions inOn one hand, they could stifle competition by preventing other exchanges from implementing similar features.On the other hand, they could incentivize further innovation by pushing other companies to develop even more advanced technologies.

It is crucial to consider the balance between protecting intellectual property and fostering open innovation.A restrictive patent regime could hinder the development of the cryptocurrency industry as a whole, while a completely open environment could discourage companies from investing in research and development. Bank of America s and Coinbase s Bitcoin Patents Revealed . Recent filings with the United States Patent and Trademark Office (USPTO) revealed a dossier of applications from Coinbase as wellThe optimal approach likely lies somewhere in between, with a focus on patents that protect truly novel and groundbreaking inventions while allowing for incremental improvements and variations.

The Broader Implications of Cryptocurrency Patents

The growing number of cryptocurrency patents held by both traditional financial institutions and crypto-native companies like Coinbase raises several important questions about the future of the industry.

Potential for Monopolization and Control

One of the primary concerns is the potential for a few large players, such as Bank of America, to monopolize key cryptocurrency technologies through patent ownership.This could give them undue influence over the direction of the industry and potentially stifle innovation. During the first week of December the second largest bank in the U.S, Bank of America (BOA), was awarded a cryptocurrency exchange patent.For example, if BoA held patents on essential elements of blockchain infrastructure, it could effectively control access to these technologies and dictate the terms of their use.

This control extends beyond simple access.A company holding a large portfolio of cryptocurrency patents could potentially use them to extract rents from other companies, either through licensing fees or by threatening litigation.This could create a barrier to entry for smaller players and further consolidate power in the hands of a few dominant firms.

The Impact on Decentralization

The core principle of decentralization, which underpins many cryptocurrencies, is also potentially threatened by the increasing number of patents.If key aspects of cryptocurrency technology are controlled by centralized entities through patent ownership, it could undermine the very foundation of decentralization.

This concern is particularly relevant to Bitcoin, which was originally conceived as a peer-to-peer electronic cash system free from the control of any central authority.If fundamental aspects of Bitcoin technology are patented, it could give patent holders the power to censor transactions, restrict access to the network, or otherwise interfere with its operation.

Defensive vs.Offensive Patent Strategies

It's crucial to distinguish between defensive and offensive patent strategies.A defensive patent strategy involves filing patents to protect one's own innovations and prevent others from suing for patent infringement.An offensive patent strategy, on the other hand, involves using patents to gain a competitive advantage, extract rents, or control a particular market segment.

While defensive patenting can be a legitimate and necessary business practice, offensive patenting can be detrimental to innovation and competition.It's important to scrutinize the patent strategies of companies like Bank of America and Coinbase to determine whether they are primarily defensive or offensive in nature.

How to Navigate the Patent Landscape in the Crypto World

For those involved in the cryptocurrency industry, understanding the patent landscape is becoming increasingly important.Here are some steps you can take to navigate this complex environment:

1. Conduct thorough patent searches: Before developing a new cryptocurrency-related technology, conduct a thorough search of the USPTO database to identify any existing patents that might cover your invention.
2. Consult with a patent attorney: A patent attorney can help you understand the patent landscape, assess the patentability of your invention, and file a patent application if appropriate.
3. Monitor patent filings: Keep an eye on the patent filings of your competitors and other companies in the cryptocurrency space.This will help you stay informed about new technologies and potential patent infringement issues.
4. Consider open-source alternatives: If possible, consider using open-source technologies rather than patented technologies.This can help you avoid patent infringement lawsuits and promote innovation in the cryptocurrency community.
5. Support patent reform: Advocate for patent reform that promotes innovation and competition in the cryptocurrency industry.This could include measures such as strengthening the requirements for patentability and making it easier to challenge invalid patents.

The Role of Open Source Development

Open-source development plays a critical role in mitigating the potential negative impacts of cryptocurrency patents.By creating freely available and collaboratively developed technologies, open-source projects can provide alternatives to patented technologies and promote innovation without the restrictions imposed by patent ownership.

Benefits of Open Source

• Accessibility: Open-source technologies are freely accessible to anyone, regardless of their financial resources or corporate affiliation.
• Transparency: Open-source code is publicly available for review and modification, allowing for greater transparency and accountability.
• Collaboration: Open-source projects encourage collaboration among developers from around the world, leading to more rapid innovation and higher-quality code.
• Resilience: Open-source technologies are less vulnerable to being controlled by a single entity, as they are maintained by a distributed community of developers.

Many successful cryptocurrency projects, such as Bitcoin itself, are built on open-source principles.These projects demonstrate the power of collaborative development and the potential to create innovative technologies that are free from the constraints of patent ownership.

Case Study: Goldman Sachs and Securities Settlement Patent

The trend of financial giants securing cryptocurrency-related patents extends beyond Bank of America.Goldman Sachs, another major player in the financial industry, was awarded a patent for a system that settles securities using a custom cryptocurrency.This example highlights the increasing interest of traditional financial institutions in leveraging blockchain technology to improve existing processes.

This patent suggests that Goldman Sachs is exploring the possibility of using cryptocurrencies to streamline the settlement of securities transactions, which can be a slow and costly process.By using a blockchain-based system, Goldman Sachs could potentially reduce settlement times, improve transparency, and lower costs.

However, this patent also raises concerns about the potential for Goldman Sachs to control the use of this technology and limit its adoption by other players in the financial industry.It's important to monitor how Goldman Sachs uses this patent and whether it promotes or hinders innovation in the securities settlement space.

The Future of Cryptocurrency Patents: A Balanced Approach

The increasing number of cryptocurrency patents is a complex issue with both potential benefits and risks.While patents can incentivize innovation and protect intellectual property, they can also stifle competition, undermine decentralization, and concentrate power in the hands of a few large players.

Finding the Right Balance

To ensure that cryptocurrency patents promote innovation and benefit the entire industry, it's crucial to find the right balance between protecting intellectual property and fostering open-source development.This could involve:

• Strengthening the requirements for patentability: To ensure that only truly novel and groundbreaking inventions are patented.
• Making it easier to challenge invalid patents: To prevent companies from using patents to stifle competition.
• Promoting open-source alternatives: To provide alternatives to patented technologies and foster innovation without the restrictions imposed by patent ownership.
• Encouraging collaboration between patent holders and open-source developers: To ensure that patented technologies are used in a way that benefits the entire cryptocurrency community.

The Importance of Community Engagement

Ultimately, the future of cryptocurrency patents will depend on the engagement of the entire cryptocurrency community.By staying informed about patent filings, advocating for patent reform, and supporting open-source development, we can help shape the patent landscape in a way that promotes innovation, decentralization, and the widespread adoption of cryptocurrency technology.

Conclusion: Key Takeaways on Bank of America's and Coinbase's Bitcoin Patents

The revelation of extensive Bitcoin patent filings by Bank of America and Coinbase highlights a growing trend in the cryptocurrency industry: the increasing involvement of both traditional financial institutions and crypto-native companies in patenting blockchain-related technologies.While these patents can incentivize innovation and protect intellectual property, they also pose potential risks to competition, decentralization, and the open-source nature of the cryptocurrency ecosystem.Understanding the motivations behind these patent filings, the potential implications for the industry, and the strategies for navigating the patent landscape is crucial for anyone involved in the cryptocurrency space.We must strive for a balanced approach that fosters both innovation and accessibility, ensuring that the benefits of cryptocurrency technology are shared widely and that the core principles of decentralization are preserved.

Key Takeaways:

• Bank of America holds a surprisingly large number of cryptocurrency patents, indicating their long-term interest in blockchain technology.
• Coinbase's patent applications likely focus on improving exchange functionality and security.
• Cryptocurrency patents pose potential risks to decentralization and open-source development.
• Navigating the patent landscape requires thorough research, legal expertise, and a commitment to open-source alternatives.
• The future of cryptocurrency patents depends on community engagement and a balanced approach to protecting intellectual property and fostering innovation.

What are your thoughts on the increasing number of cryptocurrency patents?How do you think they will impact the future of the industry?Share your opinions in the comments below!