Royal Bank of Canada (RBC) announced yesterday that it’s gearing up to make an entrance into the world of cryptocurrency with its own trading platform.
The largest bank in Canada, Royal Bank of Canada it’s exploring all possibilities within the blockchain. However, an exchange in which users can investment in crypto and pay for purchased online and in-stores is the most feasible at this moment.
With a market capitalization of $661 billion CAD ($499 billion USD), RBC is largest bank serving customers in Canada. Although RBC is not the only bank to express interest in launching a cryptocurrency exchange platform, it is the first in Canada to do so.
Canadian-based users will be able to buy and sell some of the most popular coins on the platform. Those include Bitcoin, Ethereum, Ripple’s XRP, Litecoin and a host of crypto assets. Customers will be able to open accounts in person inside any of The Royal Bank of Canada physical stores, as well as online.
Royal Bank of Canada cryptocurrency exchange patents
Although the bank’s exact plan is not yet know, Record shows that RBC applied for four different patents. Applications were files both in Canada and the United States.
The applications for the U.S. patents were filed on April 2019 and was made available for public access in October.
One of RBC United States patents 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.”
Jean Francois Thibault, RBC spokeman was quoted saying,
“As part of the innovation and discovery process, RBC, like many other organizations, files patent applications to ensure proprietary ideas and concepts are protected.”
What’s behind Royal Bank of Canada’s cryptocurrency about face?
RBC surprised the financial industry and the crypto market when it made the announcement. Why? Well, last year RBC banned all its credit and debit card holders from paying for Bitcoin and other crypto assets using their cards. Other Canadian popular banks, such as TD Bank and Bank of Montreal also adopted anti-bitcoin/crypto policies.
Canada’s cryptocurrency exchanges
The bank will be competing with a host of cryptocurrency exchanges in Canada. However, RBC has two main advantages; it already have millions of customers and already met all the financial regulations.
The majority of crypto exchanges in Canada are not compliant. Vancouver-based Einstein crypto Exchange filed for bankruptcy and refused to pay back customers $16 million. Another Vancouver-based exchange, QuadrigaCX also filed for bankruptcy with $215 million of users’ money unaccounted for.
QuadrigaCX’s CEO, back in 2018 claimed he lost the exchange’s private key used to access the funds on the exchange.
Canada is tighten up its screws on crypto exchanges not compliant with anti-money-laundering regulations. The Royal Bank of Canada can avoid any types of issues because its bank is already compliant. The crytpo exchange will simply be an add-on.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.
