System and method for converting cryptocurrency to virtual assets whose value is substantiated by a reserve of assets
A computer-based system converts cryptocurrency into a virtual asset. The system includes a user account database server configured to store data of a plurality of user accounts. The stored data pertains to each user account and indicates an accounting of obligations of the system to the user. The system also includes a cryptocurrency account server configured to receive, from a networked device of a user, a transfer of crypto currency, from an external cryptocurrency account. In response to receipt of such a transfer, the cryptocurrency account server is configured to update the data pertaining to the obligations of the system to the user. The system also includes a user interface server configured to receive a request from the user for conversion of cryptocurrency to an asset. In response to receipt of the request, the system updates the data pertaining to the user account of the user.
1. A computer-implemented method comprising:
receiving, by a cryptocurrency account server from a networked device of a first user, a transfer of cryptocurrency, recorded on a decentralized public ledger, from a cryptocurrency account under control of the first user;
in response to the cryptocurrency account server receiving the transfer of cryptocurrency, updating, by a user account database server, a user account maintained by the cryptocurrency account server to register a cryptocurrency transfer amount to a second user for the received cryptocurrency and to store a private key associated with the cryptocurrency;
receiving, by a user interface server, a user transaction request, from the second user, for converting a first portion of the cryptocurrency transfer amount into a first asset and a second portion of the cryptocurrency transfer amount into a second asset;
in response to the user interface server receiving the user transaction request, updating in real-time at a first time-point, by the user account database server, the user account by debiting the cryptocurrency transfer amount with the first and second portions of the cryptocurrency obligation and crediting a first virtual asset amount that corresponds to the first asset, and crediting a second virtual asset amount that corresponds to the second asset, at respective prevailing exchange rates, wherein the user account is credited the first virtual asset amount and the second virtual asset amount in real-time without using the private key or the decentralized public ledger to transfer the cryptocurrency, wherein the converted assets remain with the user account, credited to the second user, until receipt of another user transaction request from the second user; and
executing, by a reserve processing server at a second time-point asynchronous to the first time-point, a reserve rebalancing operation by communicating with an exchange processor for exchanging a portion of assets held by a reserve with external assets to reflect the aggregate of virtual assets, including the first virtual asset and the second virtual asset, and the first and second portions of the cryptocurrency transfer amount as indicated by data pertaining to the user account held in a plurality of user accounts within the system, whereby the decentralized public ledger identifies a transfer of cryptocurrency from the first user to the reserve associated with the cryptocurrency account server.
2. The compurter-implemented method according to claim 1 , wherein rebalancing of the reserve assets reoccurs after receipt by the user interface server of a plurality of user transaction requests.
3. The computer-implemented method according to claim 1 , wherein rebalancing of the reserve assets reoccurs after a predetermined time period.