Datavault AI (NASDAQ: DVLT) announced today 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.
Naked short selling, the practice of selling shares that have not been affirmatively determined to exist, has long been a concern for regulators and public companies. Datavault AI's patented technology aims to address this by leveraging blockchain's transparency and immutability. The company says 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 development could have significant implications for market integrity. If adopted, the technology could provide a real-time audit trail of share ownership and dividend distributions, making it harder for short sellers to exploit settlement gaps. For investors, it may enhance confidence in the accuracy of reported share positions and reduce the risk of price manipulation. The patent also opens revenue streams for Datavault AI through licensing fees, potentially boosting its financial performance.
Datavault AI is a company focused on AI-driven data experiences and monetization of assets in the Web 3.0 environment. Its platform serves multiple industries, including high-performance computing, fintech, and healthcare. The company's Acoustic Sciences division features WiSA, ADIO, and Sumerian technologies, while the Data Science division leverages Web 3.0 for data perception and monetization. The patent allowance underscores Datavault AI's commitment to innovation in blockchain and AI.
The full press release is available at https://ibn.fm/Ce5bf. Investors are encouraged to review the company's filings with the SEC for a full discussion of risks.
