Datavault AI Secures Patent for Blockchain-Based System to Combat Naked Short Selling

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 development is significant for Texas businesses and the broader financial industry, as naked short selling has long been a contentious issue that can distort market prices and harm legitimate companies. By leveraging blockchain technology, Datavault AI's patented system aims to bring greater transparency and efficiency to securities settlement processes.

For Texas-based companies, particularly those in the fintech and blockchain sectors, this patent underscores the growing importance of intellectual property in addressing market integrity challenges. The technology could enable more accurate tracking of share ownership and dividend distribution, reducing the risk of settlement failures that can lead to naked short positions. If widely adopted, it may set a new standard for how dividends are processed and how share positions are verified in real time.

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 Acoustic Sciences division features WiSA, ADIO and Sumerian patented technologies and industry-first foundational spatial and multichannel wireless, high-definition sound transmission technologies. The Data Science division leverages the power of Web 3.0 and high-performance computing to provide solutions for experiential data perception, valuation and secure monetization.

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 Information Data Exchange enables Digital Twins and the licensing of name, image and likeness by securely attaching physical real-world objects to immutable metadata, fostering responsible AI with integrity. The Company is headquartered in Philadelphia, PA. Learn more about Datavault AI at https://dvlt.ai.

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