The following post came from OkayBitcoin, who writes today about USAA is looking to making their operations more sophisticated with the power of the block chain. When people usually think about Bitcoin, they think about money. The block chain, which powers Bitcoin, is where the power lies.
The San Antonio, Texas-based financial institution USAA, which focuses on serving current and former members of the military, is investigating the “underlying technology” behind the digital currency Bitcoin in order to make its operations more efficient, according to a company executive.
The company, including its banking, insurance and investment management subsidiaries, hope that “block chain” technology can help decentralize its operations such as the back office, according to Alex Marquez, managing director of corporate development at USAA.
According to Marquez, USAA has a “large” team studying the “potential of the block chain.”
“We have serious interest in the blockchain and we think the technology would have an impact on the organization,” said Marquez. “The fact that we have such a large group of people working on this shows how serious we are about the potential of this technology.”
USAA provides banking, insurance and other products to 10.7 million current or former members of the military, owning and managing assets of about $213 billion.
Currently, USAA does not plan to get into Bitcoin as a currency, according to Marquez, but rather look into the underlying technology to improve its operations, as BNY Mellon and USB have done.
Most large banks are testing the block chain internally, according to David Johnston, managing director at Dapps Venture Fund in San Antonio, Texas.
“All of the banks are going through that process of trying to understand how this technology is going to evolve,” Johnson told Reuters.
“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.”
USAA is still in early stages of its research and has yet to identify how it will implement the technology. USAA made its first headlines in the Bitcoin space when it invested in Coinbase in January.