Patent Fintech: ArentFox Schiff Obtained Patent for Secure Crypto Wallet and Cryptocurrency Payment Protocol | Arent Fox Schiff

The use of cryptocurrencies for online purchases has been steadily gaining popularity. However, the use of cryptocurrencies to pay for products in stores has been slow due to the lack of infrastructure that can support cryptocurrency transactions. Tangem AG has obtained a technology patent that enables cryptographic transactions in conventional POS terminals without modifying the existing infrastructure.

Conventional electronic payment systems such as MasterCard, Visa and Europay do not support cryptocurrency transactions in their default state. In other words, a customer cannot simply pay for their purchases using cryptocurrency at the local supermarket’s point-of-sale (POS) terminal. To address this shortcoming, Tangem, a Swiss fintech pioneer, has developed and patented a secure cryptocurrency hardware wallet and associated cryptocurrency transaction authorization protocol compatible with mainstream electronic payment systems. Therefore, a vendor does not have to purchase a separate POS terminal configured specifically for cryptocurrency transactions.

US Patent No. 11,315,113 to Tangem describes a secure crypto wallet, which can be implemented as a smart card or smartphone application, that stores customers’ private crypto keys for crypto funds. The wallet is configured to interface with a conventional POS terminal using either a standard one-touch contactless approach or a card-insertion contact approach made with a chip-and-PIN bank card. The patent also describes a new blockchain transaction authorization method whereby a POS terminal can obtain a blockchain transaction signature (authorization) from the customer’s hardware crypto wallet and transmit this authorization through a conventional electronic payment network by embedding the necessary data in standard electronic messages.

One of the main challenges of prosecuting fintech patents is overcoming the subject matter eligibility rejections under 35 USC 101 in light of the Supreme Court decision. Alice Corp v. CLS Bank, which restricts the patentability of certain business methods. This challenge can be made even greater if your patent application is assigned to the USPTO’s 3620 or 3680 art units, which examine business method patents and are notoriously difficult to prosecute, with patent grant rates as low as 25% and 30%, respectively. Despite being located in art unit 3680, ArentFox Schiff’s patent attorneys were able to obtain the patent for Tangem, within six months of the filing date, with minimal prosecution using well-developed patent drafting strategies. , such as emphasizing the technical aspects and improvements of the invention. over conventional technical standards.

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