System and Method for Processing Payments in Fiat Currency Using Blockchain and Tethered Tokens

The method according to claim 13 further comprising:

• exchanging the first tethered token for an in-network token;
• and
• exchanging the in-network token for a second tethered token;
• wherein the first tethered token is tethered to the first fiat currency;
• and
• wherein the second tethered token is tethered to the second fiat currency.

The method according to claim 13 further comprising performing a user registration process comprising:

• receiving a user network account registration request comprising user data from the user comprising a user name, a user telephone number, and a user e-mail address from software running on a computerized device configured to send and receive messages associated with the user telephone number, defining a user device;
• generating a user network account comprising the user data, the user network account comprising the user data;
• sending a first verification code to the user telephone number and a second verification code to the user e-mail address;
• receiving a transaction, from the software on the user device, signed by a user master key generated by the software on the user device, to create a sealed user record contract, the sealed user record contract comprising hashed user data, being the product of application of a one-way hashing function to the user data;
• recording the sealed user record contract to the blockchain, producing a sealed user record contract address;
• and
• adding the sealed user record contract address to the user network account.

A method of processing a payment comprising:

• receiving a request for a virtual account number from a user;
• identifying a network account associated with the user, defining a user network account;
• generating a virtual account number responsive to the request for a virtual account number from a receiver;
• recording a mapping of the virtual account number to the user network account to a list of mappings on a blockchain network;
• sending the virtual account number to the user receiving a payment lookup request comprising a user virtual account, number, a receiver network account address, and a payment value from a receiver;
• identifying a user network account on the blockchain network responsive to the user virtual account number, comprising:
• comparing the virtual account number to a file comprising mappings of virtual account numbers to user accounts, each user account comprising user information;
• identifying a mapping comprising the virtual account number, defining an identified mapping;
• and
• retrieving user account information from the identified mapping;
• sending a payment authorization request to a user associated with the user virtual account number responsive to the payment lookup request;
• receiving a payment authorization indication from the user;
• transferring ownership of an in-network token of a value responsive to the payment value from the user network account to the receiver network account address responsive to the payment authorization indication;
• sending a debit request to an external financial account associated with the user, defined as a user financial account, to transfer fiat currency to a currency exchange in an amount responsive to the value of the transferred in-network token;
• receiving a debit response from the user financial account via the blockchain network indicating:
• the user financial account transferred fiat currency to the currency exchange;
• the currency exchange exchanged the fiat currency to a first tethered token;
• and
• the currency exchange transferred ownership of the first tethered token by recording a token contract to the blockchain network;
• sending a credit request to an external financial account associated with the receiver, defined as a receiver financial account, to transfer value from the first tethered token to the receiver financial account, the credit request comprising recording a transfer of ownership of the first tethered token to the receiver;
• and
• receiving a credit response from the receiver financial account via the blockchain network indicating:
• the currency exchange exchanged the value of the first tethered token to fiat currency, defining credit fiat value;
• and
• the currency exchange transferred the credit fiat value to the receiver financial account.