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 company stated that 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. According to Datavault AI, the patent addresses a critical market integrity issue by leveraging distributed ledger technology to ensure that only legitimate shareholders receive dividends, thereby discouraging abusive short selling practices that can artificially depress stock prices.
This development is significant because naked short selling has been a persistent concern for regulators and public companies, often leading to volatility and loss of investor confidence. By enabling real-time detection of settlement failures and automating share recalls, the patented technology could provide a robust mechanism for enforcing securities laws and protecting shareholder value. The use of digital dividend tokens creates an immutable record of share ownership at the dividend record date, making it difficult for short sellers to avoid covering their positions.
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. Additional information about Datavault AI can be found at https://dvlt.ai.
