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 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 development is significant because naked short selling—selling shares that have not been affirmatively determined to exist—has long been a controversial practice that can distort market prices and undermine investor confidence. By leveraging blockchain technology, Datavault AI's patent aims to provide a transparent, immutable record of share ownership and dividend distribution, making it easier to detect and prevent settlement failures. The patent's allowance could lead to new industry standards for tracking securities and ensuring that short sellers actually borrow shares before selling them.
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's technology suite is fully customizable and offers AI- and machine-learning-based automation, third-party integration, detailed analytics and data, marketing automation and advertising monitoring. The patent's allowance could accelerate adoption of blockchain-based solutions in the financial sector, potentially reducing systemic risk and increasing market integrity.
For more details on the patent and its implications, view the full press release at https://ibn.fm/Ce5bf. Additional information about Datavault AI is available at https://dvlt.ai.
