Datavault AI Advances Blockchain Patent for Short Selling Detection

Datavault AI (NASDAQ: DVLT) has announced that the U.S. Patent and Trademark Office (USPTO) issued a Notice of Allowance covering all 24 claims in one of the company’s patent applications focused on blockchain-based technology for detecting and mitigating naked and excessive short selling. The proposed system centers on the use of tokenized dividend distribution and distributed ledger technology to improve transparency in securities settlement while supporting automated market processes.

The patent application covers blockchain-based methods that use tokenized dividend distribution, automated settlement, and distributed ledger reconciliation to identify potential naked and excessive short-selling activity. According to the company, the Notice of Allowance represents an important milestone in expanding its intellectual property portfolio across blockchain, tokenization, and financial market infrastructure.

Datavault AI stated that the approved claims include technologies for issuing digital dividend tokens on a blockchain-based distributed ledger and reconciling those token issuances with reported shareholder positions. The company explained that this process is intended to identify discrepancies between recorded share ownership and actual settlement positions, helping market participants detect potential irregularities in securities transactions.

In addition to token issuance and reconciliation, the patent application encompasses systems designed to automate settlement procedures and share recall processes. The proposed technology also includes support for CUSIP reclassification, which is used to identify securities during corporate actions and other market events. According to Datavault AI, the platform further incorporates real-time reporting and auditing capabilities intended to improve visibility and oversight throughout the settlement lifecycle.

The company said the newly allowed patent claims strengthen its broader portfolio of blockchain and tokenization technologies while creating potential commercial opportunities through intellectual property licensing. It indicated that exchanges, transfer agents, broker-dealers, custodians, public companies, and digital asset platforms could potentially adopt or license elements of the technology once the patent process is completed.

Datavault AI noted that the innovation aligns with its broader strategy of combining blockchain infrastructure with artificial intelligence and advanced data management technologies. The company said its platform focuses on enabling secure data experiences, digital asset valuation, and monetization within the evolving Web3 environment while supporting enterprise-grade applications across multiple industries.

The company operates through two primary business divisions. Its Acoustic Sciences division develops patented wireless audio technologies under the WiSA, ADIO, and Sumerian brands. According to Datavault AI, these technologies include spatial audio transmission, high-definition wireless sound delivery, synchronization capabilities, and interference cancellation systems designed for multichannel audio environments.

Meanwhile, the company’s Data Sciences division focuses on Web3 infrastructure and high-performance computing solutions. Datavault AI explained that this segment develops technologies that support experiential data management, secure digital asset monetization, and advanced data valuation using distributed computing and blockchain-enabled systems.

The company said the patent strengthens its blockchain intellectual property portfolio while opening potential licensing opportunities for financial exchanges, broker-dealers, custodians, issuers, transfer agents, and digital asset platforms. It added that the technology is intended to support greater transparency and operational efficiency within securities markets through blockchain-enabled automation and verification processes.

Beyond financial market applications, Datavault AI reported that its platform serves organizations across sports and entertainment, event management, biotechnology, education, financial technology, real estate, healthcare, energy, and other industries. The company said its Information Data Exchange platform enables Digital Twin applications and supports the secure licensing of name, image, and likeness assets by linking physical objects with immutable metadata stored on blockchain infrastructure.

According to the company, its software platform is designed to be highly customizable and incorporates artificial intelligence and machine learning technologies to automate workflows, integrate with third-party systems, generate detailed analytics, support marketing automation, and monitor advertising performance.

Datavault AI, which is headquartered in Philadelphia, Pennsylvania, stated that its latest patent advancement reflects its continued investment in blockchain-enabled infrastructure, artificial intelligence, and enterprise software solutions aimed at improving transparency, data integrity, and digital asset management across a range of commercial markets.

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