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 patent, which expands the company's blockchain and tokenization portfolio, includes 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 allowed claims represent a significant advancement in addressing the long-standing issue of naked short selling, a practice where sellers fail to deliver shares to buyers, potentially leading to market manipulation and unfair trading practices. By leveraging blockchain technology, Datavault AI's solution aims to create transparency and accountability in the settlement process. The company stated that this intellectual property creates potential licensing opportunities for exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms.
This development comes amid increasing regulatory scrutiny of short selling practices. The Securities and Exchange Commission has been exploring measures to enhance transparency in securities lending and short sale reporting. Datavault AI's patent could provide a technological foundation for compliance with future regulations. The company's technology suite is fully customizable and offers AI- and machine-learning-based automation, third-party integration, detailed analytics, and data management.
Datavault AI is headquartered in Philadelphia, PA, and focuses on AI-driven data experiences, valuation, and monetization of assets in the Web 3.0 environment. Its Acoustic Sciences division features patented technologies for spatial and multichannel wireless sound transmission, while its Data Science division leverages Web 3.0 and high-performance computing for data perception, valuation, and secure monetization. The company serves multiple industries including sports & entertainment, biotech, fintech, and healthcare.
For more information, visit the full press release at https://ibn.fm/Ce5bf and learn more about Datavault AI at https://dvlt.ai.
