Datavault AI (NASDAQ: DVLT) announced that the U.S. Patent and Trademark Office (USPTO) 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 patent strengthens Datavault AI's intellectual property portfolio in blockchain and tokenization, creating potential licensing opportunities for exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms. Naked short selling—selling shares that have not been confirmed as existing—has been a persistent concern for regulators and market participants, as it can artificially inflate supply and depress stock prices. By leveraging blockchain technology, Datavault AI's solution aims to increase transparency and accountability in securities lending and settlement processes.
This development is significant because it addresses a long-standing issue in financial markets. The ability to issue digital dividend tokens that are tracked on a distributed ledger allows for real-time reconciliation of share positions, making it harder for short sellers to fail to deliver shares. The patent also covers automated share recalls, which can force short sellers to cover their positions, and CUSIP reclassification, which can flag stocks that are heavily shorted.
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.
For more details, the full press release is available at https://ibn.fm/Ce5bf. Information about Datavault AI can be found at https://dvlt.ai. The company's forward-looking statements are subject to risks and uncertainties as described in its SEC filings.
