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 allowance could have significant implications for market integrity by providing a technological solution to the long-standing issue of naked short selling, where sellers fail to deliver shares, potentially driving down stock prices artificially. By tokenizing dividends and tracking them on a blockchain, the system can identify discrepancies between the number of tokens issued and the number of shares reported, flagging potential settlement failures.
The patent also includes automation of share recalls and real-time reporting, which could reduce the administrative burden on companies and transfer agents. Additionally, the technology supports CUSIP reclassification, which may help companies manage their capital structure more effectively. Datavault AI's platform serves multiple industries, including high-performance computing software licensing for sports & entertainment, events & venues, biotech, education, fintech, real estate, healthcare, and energy. 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.
To view the full press release, visit https://ibn.fm/Ce5bf. Datavault AI is headquartered in Philadelphia, PA, and more information is available at https://dvlt.ai.
This patent allowance underscores the growing intersection of blockchain technology and financial regulation. As markets increasingly digitize, such innovations could become critical tools for ensuring transparency and fairness. For Datavault AI, the patent opens doors to licensing deals that could generate recurring revenue. However, the company notes forward-looking statements involve risks and uncertainties, as detailed in its SEC filings, and investors should not place undue reliance on these statements.
