Datavault AI Receives USPTO Notice of Allowance for Patent Targeting Naked and Excessive Short Selling Through Tokenized Dividend Distribution

USPTO allows all 24 pending claims less than six months after the January 2026 filing; allowed claims cover blockchain-enabled dividend tokenization, shareholder verification, and settlement reconciliation designed to expose undelivered and synthetic share positions


PHILADELPHIA--(BUSINESS WIRE)-- Datavault AI Inc. (“Datavault AI” or the “Company”) (NASDAQ: DVLT), a provider of data monetization, credentialing, digital engagement, and real-world asset (‘RWA’) tokenization technologies, today announced that the United States Patent and Trademark Office (USPTO) has issued a Notice of Allowance, dated July 1, 2026, for U.S. Patent Application No. 19/445,241, “Method and System for Mitigating Naked and Excessive Short Selling through Tokenized Dividend Distribution,” allowing all 24 pending claims.

The application was filed on January 9, 2026, reaching allowance in under six months. A Notice of Allowance indicates that the USPTO has determined the application’s claims are allowable, subject to payment of the issue fee and completion of final administrative requirements before issuance. The allowed claims address one of the most persistent integrity questions in U.S. equity markets: how issuers and their shareholders can verify ownership and dividend entitlement when settlement discrepancies, including those associated with excessive or naked short selling, obscure the true share count.

Key Highlights

  • Notice of Allowance dated July 1, 2026 allows all 24 pending claims of U.S. Patent Application No. 19/445,241, filed January 9, 2026.
  • Allowed claims cover both computer-implemented methods and systems for detecting and mitigating naked or excessive short selling of publicly traded securities.
  • Core mechanism generates digital dividend tokens recorded on a distributed ledger, with a data-integrity safeguard under which no dividend token is issued corresponding to an undelivered share.
  • Settlement reconciliation compares issued dividend tokens against reported share positions held and sold by market intermediaries to identify undelivered, synthetic, or uncovered short positions.
  • Additional allowed claims cover CUSIP reclassification through transfer agents, automatic recall of lent shares, smart-contract settlement execution, short-interest analytics identifying brokers or custodians responsible for delivery failures, and real-time reporting interfaces.
  • Expands Datavault AI’s intellectual property portfolio spanning blockchain, tokenization, digital assets, and capital markets technologies.
  • Creates potential licensing opportunities across exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms.
  • Complements the Company’s previously announced digital asset initiatives, including the Dream Bowl I meme coin, which began trading on the Biconomy exchange in June 2026.

Patent Overview

The allowed claims relate to blockchain-based methods and systems that pair a dividend event with digital dividend tokens recorded on a distributed ledger, then reconcile those tokens against reported share positions to surface settlement discrepancies. The allowed claims cover:

  • Generation of digital dividend tokens corresponding to shares entitled to a declared dividend, assigned to verified shareholders of record.
  • Shareholder verification through cross-reference of transfer-agent data, custodian records, and distributed-ledger entries.
  • Reconciliation of issued tokens against reported share positions to identify undelivered, synthetic, or uncovered short positions.
  • Reclassification of security identifiers, including assignment of a new CUSIP number, through transfer agents to distinguish post-dividend from pre-dividend shares and compel reconciliation of ownership records.
  • Settlement execution for uncovered positions through delivery of shares, delivery of tokens, or transfer of equivalent monetary value, including via smart-contract logic.
  • Automatic recall of lent shares in securities-lending programs to preserve dividend eligibility of beneficial owners.
  • Immutable audit records of delivered, settled, and undelivered positions, with short-interest analytics identifying intermediaries responsible for delivery failures and real-time reporting interfaces.

The Company’s approach is intended to modernize traditional dividend administration through blockchain-based infrastructure capable of improving transparency and operational efficiency for public companies and financial market participants.

Expanding Digital Capital Markets Infrastructure

As global financial markets continue evaluating blockchain-enabled securities infrastructure, exchanges, financial institutions, transfer agents, and issuers are assessing technologies that improve transparency, automate corporate actions, and strengthen shareholder recordkeeping. Datavault AI believes its expanding intellectual property portfolio positions the Company to participate in these evolving markets through potential licensing relationships with organizations developing blockchain-enabled securities ecosystems.

“Receiving this Notice of Allowance represents another important milestone in expanding Datavault AI’s intellectual property portfolio into digital capital markets infrastructure,” said Nathaniel T. Bradley, CEO of Datavault AI. “We believe blockchain-enabled dividend distribution and shareholder verification technologies have the potential to improve transparency, strengthen market integrity, and create new licensing opportunities across public markets, financial institutions, and digital asset ecosystems. This allowance reflects our continued commitment to developing innovative technologies that address emerging challenges in modern financial markets.”

About Datavault AI

Datavault AI™ (NASDAQ: DVLT) 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 with intellectual property covering audio timing, synchronization, and multi-channel interference cancellation. 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’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. For more information, visit www.dvlt.ai. Investor information is available at ir.datavaultsite.com. Technology news and insights are published at dvlt.ai/insights.

Forward-Looking Statements

This press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and other securities laws) about Datavault AI Inc. (“Datavault AI,” the “Company,” “us,” “our,” or “we”) and our industry that involve risks and uncertainties. In some cases, you can identify forward-looking statements because they contain words, such as “may,” “might,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” “likely” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. The absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements, including, but not limited to, statements regarding future events, the anticipated issuance of a U.S. patent following the Notice of Allowance dated July 1, 2026 for U.S. Patent Application No. 19/445,241 and the expected timing and scope thereof, potential licensing opportunities across exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms, the anticipated capabilities and benefits of the Company’s blockchain-enabled dividend distribution and shareholder verification technologies, the anticipated adoption of blockchain-enabled securities infrastructure by financial market participants, and the expected operational, technical, and commercial outcomes of the Company’s commercial strategy, and the projected direction and market impacts of regulatory changes with respect to digital assets, are necessarily based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain.

Readers are cautioned not to place undue reliance on these and other forward-looking statements contained herein.

Actual results may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties including, but not limited to, the following: the risk that the allowed claims do not issue as a patent, or issue with a narrower scope than anticipated, as a Notice of Allowance is not a grant of patent rights and the application remains subject to payment of the issue fee, withdrawal from issue, and completion of remaining USPTO requirements; the Company’s ability to commercialize or license the underlying technology and to establish licensing relationships with exchanges, transfer agents, broker-dealers, custodians, issuers, or digital asset platforms; the pace and extent of adoption of blockchain-enabled securities infrastructure by financial market participants; changes in market demand for Datavault AI’s services and products; changes in economic, market, or regulatory conditions; risks relating to evolving regulatory frameworks applicable to tokenized assets; risks associated with technological development and integration; and other risks and uncertainties as more fully described in Datavault AI’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2025 and other filings that Datavault AI makes from time to time with the SEC, which are available on the SEC’s website at www.sec.gov, and could cause actual results to vary from expectations.

The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. Datavault AI undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

Datavault AI may not actually achieve the plans, intentions, or expectations disclosed in its forward-looking statements, and you should not place undue reliance on such forward-looking statements. Datavault AI’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments it may make.

Trademarks, Trade Names, Service Marks and Copyrights

We own or have rights to use various trademarks, tradenames, service marks and copyrights, which are protected under applicable intellectual property laws. This press release also contains trademarks, tradenames, service marks and copyrights of other companies, which are, to our knowledge, the property of their respective owners. Solely for convenience, certain trademarks, tradenames, service marks and copyrights referred to in this press release may appear without the ©, ®, and ™ symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensors to these trademarks, tradenames, service marks and copyrights. We do not intend our use or display of other parties’ trademarks, tradenames, service marks or copyrights to imply, and such use or display should not be construed to imply a relationship with, or endorsement or sponsorship of us by, these other parties.

Media Contact:
marketing@dvlt.ai

Investor Contact:
Edward Barger
VP, Investor Relations
ebarger@dvlt.ai | ir@dvlt.ai

Source: Datavault AI

Released July 8, 2026