Canada's largest bank wants to open its own crypto exchange

Canada’s largest bank, the Royal Bank of Canada (RBC), is considering opening a cryptocurrency trading platform. They have different goals in mind.

Contents hide

1 180 degrees

2 Unique in approach

3 Infrastructure for digital assets

4 Related posts:

180 degrees

As a trading platform, users can of course buy and sell cryptocurrencys, including big names such as bitcoin and ether. In addition, customers could use their digital assets as traditional currencies to purchase products in stores or online.

And this is a 180 degree turn for the couch. At the beginning of 2018, RBC’s attitude was completely different. As a customer of that bank, you were not even allowed to buy cryptocurrency with your RBC account.

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

Unique in approach

There are very few banks worldwide that run their own crypto exchange. In Canada, RBC is the first traditional bank in Canada to launch a cryptocurrency trading platform and offer digital asset accounts.

Marc Kaufman from law firm Rimon Law also finds this unique:

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“I can’t think of a big bank anywhere in the world that has applied for a patent directly related to a crypto-exchange.”

It seems that the bank has also applied for four patents in Canada and in the United States. These are all aimed at integrating cryptocurrency’s in their daily activities.

Because RBC is a fully regulated financial institution, the bar is high. The bank must ensure strong security measures, proper storage of private keys and enforcement of the rules on money laundering.

Infrastructure for digital assets

In the past three years, RBC had filed various patents related to digital assets, cryptographic proofs and settlement systems. In 2017, the bank experimented with blockchain to make payments between Americans and Canadians. RBC also uses blockchain for identity verification of its customers.

The ambitions of the Canadian bank go further than just facilitating the trade in cryptos. They are also interested in offering services for tokenized assets, for example tokenized shares, bonds or company shares. These are also called security tokens.

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According to the bank, the new technology makes it possible to build new market places for new financial instruments. On the basis of tokens, things of value and even physical objects can be securely traded.