Datavault AI Inc. (NASDAQ: DVLT) announced that the U.S. Patent and Trademark Office has issued a Notice of Allowance for all 24 claims in its patent application covering blockchain-based methods and systems designed to detect and mitigate naked and excessive short selling through tokenized dividend distribution. This intellectual property expands the company's blockchain and tokenization portfolio while creating potential licensing opportunities for exchanges, transfer agents, broker-dealers, custodians, issuers and digital asset platforms.
The allowed claims include technologies for issuing digital dividend tokens on a distributed ledger, reconciling token issuance with reported share positions to identify settlement discrepancies, automating settlement and share recalls, supporting CUSIP reclassification, and providing real-time reporting and audit capabilities. These features address a longstanding issue in financial markets where naked short selling—selling shares that have not been borrowed—can distort prices and undermine investor confidence.
By leveraging blockchain's immutable ledger, the patented system can track the issuance and distribution of dividend tokens, ensuring that only entitled shareholders receive them. Any discrepancy between the number of tokens issued and the reported share positions would signal potential settlement failures or naked short positions. This real-time detection enables faster corrective actions, such as share recalls or settlement adjustments, thereby reducing market manipulation risks.
The patent allowance strengthens Datavault AI's position in the Web3 and fintech sectors, where blockchain-based solutions are increasingly sought for transparency and efficiency. The company's platform already serves multiple industries, including high-performance computing, sports & entertainment, biotech, education, fintech, real estate, healthcare, and energy. With this new patent, Datavault AI can offer a unique tool for market participants seeking to comply with regulatory requirements and enhance market integrity.
For more details, the full press release is available at https://ibn.fm/Ce5bf. Datavault AI is headquartered in Philadelphia, PA, and more information about the company can be found at https://dvlt.ai.
