Datavault AI Inc. (NASDAQ: DVLT) has received a Notice of Allowance from the U.S. Patent and Trademark Office 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 announcement marks a significant milestone in the company's intellectual property strategy, potentially reshaping how market participants address illegal short selling practices.
The allowed patent claims cover a range of innovative technologies, including 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. By leveraging blockchain's transparency and immutability, the system can flag discrepancies between the number of dividend tokens issued and the number of shares reported, which may indicate naked short selling.
Naked short selling occurs when a seller does not borrow or arrange to borrow shares in time for settlement, potentially leading to artificial price suppression and market manipulation. The Securities and Exchange Commission (SEC) has long considered it illegal in most circumstances. Datavault AI's patent could provide a technological solution to detect and prevent such practices, offering a tool for regulators, exchanges, and market participants.
The company stated that this 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. The ability to automate settlement and share recalls through blockchain-based tokens could streamline existing processes and reduce the risks associated with settlement failures.
For a detailed view of the full press release, visit https://ibn.fm/Ce5bf.
Datavault AI (NASDAQ: DVLT) is a company operating in the Web 3.0 space, offering AI-driven data experiences, valuation, and monetization of assets. Its cloud-based platform includes divisions focused on Acoustic Sciences and Data Sciences. The Acoustic Sciences division features patented technologies like WiSA, ADIO, and Sumerian for spatial and multichannel wireless high-definition sound transmission. The Data Science division leverages Web 3.0 and high-performance computing for experiential data perception, valuation, and secure monetization.
The company's platform serves various industries, including sports and entertainment, events and venues, biotech, education, fintech, real estate, healthcare, and energy. Its Information Data Exchange enables Digital Twins and licensing of name, image, and likeness by attaching physical real-world objects to immutable metadata. The technology suite offers AI and machine learning-based automation, third-party integration, detailed analytics, and marketing automation.
This patent allowance could enhance Datavault AI's position in the market for blockchain-based financial technologies. As the company explores licensing opportunities, the patent may become a key asset in addressing long-standing issues in securities settlement and short selling transparency. For updates on DVLT, the company's newsroom is available at https://ibn.fm/DVLT.
