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. The 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. This patent addresses a long-standing issue in financial markets where naked short selling—selling shares that have not been borrowed or confirmed as existing—can distort prices and undermine investor confidence.
By leveraging blockchain's immutable ledger, Datavault AI's technology aims to provide transparency and automation in dividend distribution, ensuring that only entitled shareholders receive dividends and reducing the ability to short shares that are not legitimately available. The system can automatically trigger share recalls when discrepancies are detected, potentially reducing settlement failures and market manipulation.
Datavault AI (NASDAQ: DVLT) is a leader in AI-driven data experiences, valuation and monetization of assets in the Web 3.0 environment. The company's cloud-based platform provides solutions through its Acoustic Sciences and Data Sciences divisions. The Data Science division leverages Web 3.0 and high-performance computing to provide solutions for experiential data perception, valuation and secure monetization.
The company noted that the patent could be licensed to various financial market participants. For exchanges, the technology could enhance market surveillance capabilities. Transfer agents and broker-dealers could use it to improve settlement accuracy and compliance. Custodians and issuers might leverage the system for more efficient dividend management and shareholder communication.
This development is significant as it represents a practical application of blockchain technology to address a specific regulatory and market integrity challenge. The patent could set a precedent for using distributed ledger technology in securities settlement and corporate actions. For investors, the patent allowance strengthens Datavault AI's intellectual property portfolio and opens new revenue streams through licensing.
The full press release is available at https://ibn.fm/Ce5bf. More information about Datavault AI can be found at https://dvlt.ai.
