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 to detect and mitigate naked and excessive short selling. The patent, which focuses on tokenized dividend distribution, represents a significant step in leveraging distributed ledger technology to address long-standing market manipulation concerns.
According to the company, 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 intellectual property expands Datavault AI's blockchain and tokenization portfolio while creating potential licensing opportunities for exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms.
The announcement underscores the growing intersection of blockchain technology with traditional financial markets. Naked short selling, which involves selling shares that have not been borrowed, has been a contentious issue for regulators and market participants. By using tokenized dividends to track share ownership and settlement, the patented system could provide a transparent and automated mechanism to identify discrepancies in share positions.
Datavault AI, headquartered in Philadelphia, PA, is known for its AI-driven data experiences and asset valuation in the Web 3.0 environment. Its platform spans multiple industries, including high-performance computing software licensing for sports, entertainment, biotech, fintech, and healthcare. The company’s technology suite includes WiSA, ADIO, and Sumerian for wireless audio, as well as the Information Data Exchange for digital twins and secure asset licensing.
The patent allowance arrives at a time when market regulators are increasingly scrutinizing short selling practices. The ability to detect naked short selling in near real-time could enhance market integrity and investor confidence. Datavault AI’s technology may also offer a competitive edge for financial institutions seeking to comply with evolving regulatory requirements.
For more details, the full press release is available at https://ibn.fm/Ce5bf. Updates on Datavault AI can be found at its newsroom at https://ibn.fm/DVLT.
