Technology

Wells Fargo Patent Uses Blockchain to Protect Sensitive Information

Yesterday, Wells Fargo released a patent for a tokenization system built to protect sensitive financial information on the blockchain. This system uses encryption to process sensitive but previously unrestricted data into  restricted tokens, and these tokens can only be received and ‘detokenized’ by a specific user. With this technology, companies are able to control access to sensitive financial information, which is particularly relevant following recent hacks targeting major banks.

By Becker1999 from Grove City, OH (WellsFargo-(12)) [CC BY 2.0], via Wikimedia Commons

Wells Fargo was an early advocate of blockchain technology, launching the world’s first interbank trade system on the blockchain for Chinese freight shipment in 2016. The release of this tokenization patent by Wells Fargo demonstrates yet another instance of a major financial institution leveraging blockchain technology, and provides further legitimacy to the use of tokenization for data security purposes.

Please see below a comment from Joseph Weinberg, Chairman of Shyft, the first Blockchain-based identity ecosystem for cybersecurity.

Joseph Weinberg, Chairman of Shyft, said:

“Tokenization is a powerful tool in facilitating the secure sharing of trusted and compliant data. In addition, tokenization systems hold the potential to level the playing field when it comes to access to capital and financial services, particularly for the 3.5 billion global citizens who are considered “unbanked” or “underbanked.”

To leverage this potential, we’ve recently launched a partnership with Polymath, the world’s first security token creation platform. And through this partnership, we plan to work toward a shared goal of building a future that is more financially inclusive and secure.”