Datavault AI gets USPTO patent allowance for short-selling tool

Datavault AI Inc. (NASDAQ: DVLT) announced that the U.S. Patent and Trademark Office issued a Notice of Allowance on July 1, 2026, for a patent application covering a blockchain-based system designed to detect and mitigate naked and excessive short selling through tokenized dividend distribution.

The application, U.S. Patent Application No. 19/445,241, was filed on January 9, 2026, and received allowance of all 24 pending claims in under six months. A Notice of Allowance indicates the USPTO has determined the claims are allowable, though the patent has not yet been granted and remains subject to payment of an issue fee and completion of administrative requirements.

The allowed claims cover computer-implemented methods and systems that generate digital dividend tokens recorded on a distributed ledger, with no token issued for an undelivered share. The system reconciles issued tokens against reported share positions held 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, and real-time reporting interfaces.

According to the company's press release, the technology creates potential licensing opportunities across exchanges, transfer agents, broker-dealers, custodians, issuers, and digital asset platforms.

"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.

The company noted the patent application complements previously announced digital asset initiatives, including a meme coin that began trading on the Biconomy exchange in June 2026. Datavault AI is headquartered in Philadelphia, Pennsylvania.

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