System and method for converting cryptocurrency to virtual assets whose value is substantiated by a reserve of assets

A computer system for improving efficiency of blockchain-based transactions originating from accounts without sufficient cryptocurrency assets by requiring fewer operations on a blockchain, the system comprising:

• a cryptocurrency account server, the cryptocurrency account server comprising:
• a first processor;
• a first memory that stores first computer readable instructions when executed by the first processor cause the first processor to perform operations to:
• receive a request from a networked device of a first user for transfer of an amount of a cryptocurrency from a sub-account of an account of the first user within a plurality of users each having an account associated with the cryptocurrency transfer service system to a second user not included within the plurality of users, the cryptocurrency transfer service system having a reserve of assets associated with virtual assets held by the plurality of users and an intermediary pool of cryptocurrency that comprises at least a threshold amount of the cryptocurrency and is separate from the reserve;
• determine that the sub-account of the account is denominated by a virtual asset other than the cryptocurrency;
• execute a transfer of the cryptocurrency amount from the intermediary pool of cryptocurrency to a second account associated with the second user based on determining the sub-account is denominated by the virtual asset other than the cryptocurrency, the transfer of the cryptocurrency amount from the intermediary pool of cryptocurrency to the second account being executed such that it is reflected on a decentralized public ledger;
• a user account database server, the user account database server comprising:
• a second processor;
• a second memory that stores second computer readable instructions when executed by the second processor cause the second processor to perform operations to:
• update the account by debiting a virtual asset corresponding to at least a part of the cryptocurrency amount from the sub-account;
• a transaction engine, the transaction engine comprising:
• a third processor;
• a third memory that stores third computer readable instructions when executed by the third processor cause the third processor to perform operations to:
• determining whether the intermediary pool has reached a predefined threshold;
• in response to determining that the intermediary pool has reached the predefined threshold:
• exchange at least one asset held by the reserve for a second amount of cryptocurrency at an external exchange;
• and
• transfer the second amount of cryptocurrency from the reserve to the intermediary pool.