USAA Bank Expresses Deep Interest in Blockchain Technology

USAA, a San Antonio-based financial and insurance institution, is looking into new, unconventional systems to boost back-office operations.

The 93-year-old bank reportedly has an entire team devoted to the development of blockchain technology.

USAA is one of the leading financial service providers for current and former military members. It currently manages over 10.7 million accounts, amounting to a total of $213 billion in assets.

Hints of USAA’s involvement in cryptocurrency-related technology started earlier this year, when it participated in Coinbase’s highly successful Series C. Coinbase raised $75 million during the campaign, setting the record for the largest funding round by a bitcoin company.

Firms that participated in the round include DFJ Growth, The New York Stock Exchange, and Valor Capital Group.

Despite its direct link with bitcoin, Alex Marquez, managing director of corporate development, clarified that the bank does not plan on making use of the virtual currency. The main focus of the company’s research is on decentralization and open ledger distribution, which is similar to the objectives of other businesses that are pioneering the study of the nascent technology.

Samsung, UBS, BNY Mellon and IBM were some of the first establishments to openly announce interest in blockchain expansion.

“I would say that by the end of the year, most will have solidified a blockchain technology strategy, how the bank is going to implement and how it will move the technology forward,” highlighted David Johnston, managing director at US-based Dapps Venture Fund.

“All of the banks are going through that process of trying to understand how this technology is going to evolve.”