System for physically delivering virtual currencies

Patent metadata

Field	Value
Publication number	US-11514522-B2
Application number	US-201916679610-A
Country	US
Kind code	B2
Filing date	Nov 11, 2019
Priority date	Nov 4, 2015
Publication date	Nov 29, 2022
Grant date	Nov 29, 2022

Abstract

Systems and methods are disclosed for settling futures contracts that are based on virtual currencies. A clearing counter-party operates a clearing counter-party computer that may oversee physical delivery of virtual currency between a buyer and seller. The clearing counter-party computer does not take possession of the virtual currency and monitors a publicly viewable ledger to confirm that transactions have taken place.

First claim

The invention claimed is:

1. A system comprising:
a clearing counter-party computer associated with a clearing counter-party and in communication with one or more buyer computers and one or more seller computers corresponding to one or more buyers and one or more sellers of a plurality of virtual currency futures contracts, each of which is for physical delivery, upon an associated expiration date, of a quantity of an underlying virtual currency transacted via a publicly viewable electronic ledger also in communication with the clearing counter-party computer, and wherein the clearing counter-party computer comprises a computer-readable medium that contains computer-executable instructions that cause the clearing counter-party computer, without the clearing counter-party taking actual possession of the virtual currency, to:
(a) identify, upon determination that at least one of the plurality of futures contracts has expired, at least one buyer, of the one or more buyers, to take delivery, and at least one seller, of the one or more sellers, to make delivery of the quantity of the underlying virtual currency of the futures contract determined to be expired;
(b) receive a virtual currency address from each of the buyer computers corresponding to the identified at least one buyer;
(c) direct each of the seller computers to transfer, via the publicly viewable electronic ledger, at least a portion of the quantity of the underlying virtual currency to be physically delivered, per the futures contract determined to be expired, to the received virtual currency address received from each of the buyer computers; and
(d) confirm, via the publicly viewable electronic ledger, that the at least one seller transferred the at least a portion of the quantity of the underlying virtual currency to be physically delivered to the at least one buyer; and
wherein the directing of each of the seller computers further comprises providing a unique identification code that corresponds to the virtual currency address and which the publicly viewable electronic ledger is operative to include in a transaction viewable therein which includes the unique identification code, and wherein the confirmation that the seller directly transferred the virtual currency to the buyer comprises confirming that the publicly viewable electronic ledger includes the unique identification code.

2. The system of claim 1 , further including a secure channel for receiving the virtual currency address from each of the buyer computers and/or directing each of the seller computers.

3. The system of claim 2 , wherein the secure channel comprises an encrypted channel.

4. The system of claim 1 , wherein the virtual currency address comprises at least one wallet address.

5. The system of claim 1 , wherein the publicly viewable electronic ledger is maintained by one or more ledger computers in communication with the clearing counter-party computer.

6. The system of claim 1 , wherein the virtual currency comprises Bitcoin.

7. The system of claim 1 wherein the computer-executable instructions further cause the clearing counter-party computer to reduce the quantity of the underlying virtual currency to be physically delivered to the at least one buyer by an amount the at least one buyer is obligated to deliver to another buyer per another of the plurality of futures contracts determined to be expired and to which the at least one buyer is a seller.

8. A system comprising:
a clearing counter-party computer in communication with buyer and seller computers and a publicly viewable electronic ledger via which a virtual currency is transacted and containing a computer-readable medium that contains computer-executable instructions that cause the clearing counter-party computer, without the clearing counter-party taking actual possession of the virtual currency, to:
(a) identify, upon determination that at least one futures contract that calls for physical delivery of a quantity of virtual currency has expired, one or more sellers to make delivery to a buyer of the quantity of virtual currency;
(b) receive, from the buyer computer associated with the identified buyer, a designation identifying where each of the seller computers corresponding with the identified one or more seller is to transfer at least portion of the quantity of virtual currency, and communicate the received designation thereto; and
(c) confirm, via the publicly viewable electronic ledger, that each of the one or more sellers transferred the quantity of virtual currency to be physically delivered to the buyer; and
wherein the communication to each of the seller computers includes a unique identification code for each of the one or more sellers to include in their transaction with the publicly viewable ledger to transfer at least portion of the quantity of virtual currency, the unique identification code being viewable in the publicly viewable ledger subsequent to the transfer.

9. The system of claim 8 , wherein the clearing counter-party computer is in communications with the buyer computer and or the one or more seller computers via a secure channel.

10. The system of claim 9 , wherein the secure channel comprises an encrypted channel.

11. The system of claim 8 , wherein the designation comprises a virtual currency address.

12. The system of claim 8 , wherein the publicly viewable electronic ledger is maintained by one or more ledger computer in communication with the clearing counter-party computer.

13. The system of claim 8 , wherein the virtual currency comprises Bitcoin.

14. The system of claim 8 , wherein the clearing counter-party computer contains a computer-readable medium that contains computer-executable instructions that cause the clearing counter-party computer to assign unique transaction identifiers to each of the seller computers.

15. The system of claim 8 , wherein the clearing counter-party computer contains a computer-readable medium that contains computer-executable instructions that cause the clearing counter-party computer to offset the quantity of virtual currency to be delivered to the buyer by an amount the buyer is obligated to deliver to another seller per another of the at least one futures contract determined to be expired.

16. A computer implemented method comprising:
(a) determining, by a clearing counter-party computer in communication with a publicly viewable electronic ledger via which a virtual currency is transacted, when at least one futures contract that calls for physical delivery of a quantity of the virtual currency expires, and based thereon, without the clearing counter-party taking actual possession of the virtual currency, identifying at least one seller to make delivery and at least one buyer to take delivery of the quantity of virtual currency;
(b) receiving, by the clearing counter-party computer from each buyer computer associated with each of the at least one buyer, a virtual currency address;
(c) directing, by the clearing counter-party computer, each seller computer associated with each of the identified at least one seller, to transfer at least a portion of the quantity of the virtual currency to the received virtual currency address via the publicly viewable electronic ledger; and
(d) confirming, by the clearing counter-party computer via the publicly viewable electronic ledger, that the at least one seller transferred the quantity of virtual currency to be physically delivered to the at least one buyer; and
wherein the directing further comprises providing a unique identification code that corresponds to the virtual currency address, and wherein

Assignees

• Chicago Mercantile Exchange Inc

Inventors

• Pierce Ryan
• Ro Sandra
• Ahmed Mansoor

Classifications

• G06Q40/04 Primary

  Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange · CPC title