Datavault AI (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. 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.
The company said the intellectual property expands its blockchain and tokenization portfolio while creating potential licensing opportunities for exchanges, transfer agents, broker-dealers, custodians, issuers and digital asset platforms. This patent could provide a technological solution to a long-standing regulatory issue in financial markets, where naked short selling—selling shares that have not been borrowed—can distort prices and harm investors. By using tokenized dividends and distributed ledger technology, the system aims to ensure that only legitimate shareholders receive dividends and that settlement discrepancies are identified and corrected in real time.
Datavault AI’s platform serves multiple industries, including high-performance computing software licensing for sports & entertainment, events & venues, biotech, education, fintech, real estate, healthcare, energy and more. The company is headquartered in Philadelphia, PA. For more information, visit https://dvlt.ai.
This development is significant because it addresses a critical gap in current market infrastructure. Naked short selling has been a concern for regulators and companies alike, as it can lead to market manipulation and erode investor confidence. If implemented, Datavault AI’s technology could provide a transparent and automated mechanism to prevent such practices, potentially benefiting the entire financial ecosystem. The full press release is available at https://ibn.fm/Ce5bf.
Datavault AI’s Acoustic Sciences division features WiSA, ADIO, and Sumerian patented technologies for wireless high-definition sound transmission, while its Data Science division leverages Web 3.0 and high-performance computing for data perception, valuation, and monetization. The company’s technology suite is fully customizable and offers AI- and machine-learning-based automation, third-party integration, detailed analytics, and marketing automation.
Forward-looking statements in this article involve risks and uncertainties, as detailed in the company’s filings with the SEC. All parties undertake no duty to update this information unless required by law. For full disclaimers, see http://IBN.fm/Disclaimer.
