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 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 said 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 could have significant implications for market integrity, as naked short selling—selling shares that have not been borrowed—can distort prices and harm investors. The patented technology aims to bring transparency and automation to dividend distribution, making it harder for short sellers to exploit settlement loopholes.
Datavault AI is leading the way in AI-driven data experiences, valuation and monetization of assets in the Web 3.0 environment. The Company’s cloud-based platform provides comprehensive solutions with a collaborative focus in its Acoustic Sciences and Data Sciences divisions. 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 patent allowance arrives amid growing regulatory scrutiny of short selling practices. By enabling real-time audit capabilities and share recall automation, the technology could help issuers and market participants detect abnormal short interest and take corrective action. The tokenized dividend approach ensures that only legitimate shareholders receive dividends, potentially reducing the economic incentives for naked short selling.
For more details, the full press release is available at https://ibn.fm/Ce5bf. Datavault AI'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. The Company is headquartered in Philadelphia, PA. Learn more about Datavault AI at https://dvlt.ai.
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