Datavault AI Secures USPTO Allowance for Blockchain Patent Targeting Naked Short Selling

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 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. This patent comes at a time when naked short selling—the practice of selling shares that have not been affirmatively determined to exist—remains a contentious issue in financial markets, often blamed for excessive volatility and manipulation.

By leveraging blockchain technology, Datavault AI's solution aims to bring transparency and automation to dividend distribution and share reconciliation. The patent's focus on tokenized dividends could enable real-time tracking of share ownership and settlement, making it harder for bad actors to engage in abusive short selling practices. The implications for market integrity are significant: if adopted widely, such technology could reduce settlement failures and increase investor confidence.

Datavault AI's platform serves multiple industries, including high-performance computing software licensing for sports & entertainment, events & venues, biotech, education, fintech, real estate, healthcare, energy and more. 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.