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 patent could address a long-standing issue in financial markets where naked short selling—selling shares that have not been affirmatively determined to exist—can lead to artificial price suppression and settlement failures. By tokenizing dividends and tracking them on a blockchain, the system aims to create an immutable record of ownership that exposes discrepancies between reported and actual share positions.
Datavault AI is leading the way in AI-driven data experiences, valuation and monetization of assets in the Web 3.0 environment, according to its website at https://dvlt.ai. The company's cloud-based platform provides comprehensive solutions with a collaborative focus in its Acoustic Sciences and Data Sciences divisions. The Acoustic Sciences division features patented technologies for spatial and multichannel wireless, high-definition sound transmission, while the Data Science division leverages Web 3.0 and high-performance computing for experiential data perception, valuation and secure monetization.
The patent allowance comes at a time when regulators and market participants are increasingly scrutinizing short-selling practices. The technology could provide a mechanism for companies to detect when more shares are being traded than exist, potentially flagging illegal naked short positions. The system's ability to automate share recalls and reclassify CUSIPs could also streamline corporate actions and reduce settlement risks.
For Datavault AI, this patent strengthens its intellectual property portfolio and opens revenue streams through licensing. 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 company is headquartered in Philadelphia, PA.
Investors can find the latest news and updates relating to DVLT in the company’s newsroom at https://ibn.fm/DVLT. For more information about Datavault AI, visit https://dvlt.ai.
