Systems and methods for distributed-ledger based settlement

Patent metadata

Field	Value
Publication number	US-12154100-B2
Application number	US-202318296337-A
Country	US
Kind code	B2
Filing date	Apr 5, 2023
Priority date	Oct 15, 2019
Publication date	Nov 26, 2024
Grant date	Nov 26, 2024

Abstract

Systems and methods for distributed ledger-based settlement are disclosed. In one embodiment, a method may include: receiving settlement instructions from a first party providing a commodity and a second party providing cash; matching the settlement instructions; affirming the matched settlement instructions with the parties; a smart contact sending the affirmed settlement instructions to a commodity clearing bank; the smart contract receiving confirmation of a blockage of the commodity from the commodity clearing bank; the smart contact sending the affirmed settlement instructions to a cash clearing bank; the smart contract receiving confirmation of a blockage of the cash from the cash clearing bank; the smart contract executing the exchange of tokens for the commodity for tokens for the cash; and the smart contract writing the tokens for the cash to a wallet for the first party, and writing tokens for the commodity to a wallet for the second party.

First claim

What is claimed is:

1. A method for a distributed ledger-based settlement comprising:
executing, by an information processing apparatus comprising at least one exchange computer processor coupled with an exchange computer memory, an exchange computer program stored in the exchange computer memory and causing the execution of the following:
receiving a first settlement instruction from a first party to a transaction involving a transfer of first cash for second cash, wherein the first party is providing the first cash;
receiving a second settlement instruction from a second party to the transaction, wherein the second party is providing the second cash;
retrieving a matching key that specifies one or more fields in the first settlement instruction and the second settlement instruction that must match, wherein the one or more fields comprises a quantity and a price;
matching the first settlement instruction and the second settlement instruction using the one or more fields specified by the matching key;
affirming the matched settlement instructions with the first party and the second party;
executing a smart contract, comprising:
sending the affirmed matched settlement instructions to a first clearing bank, wherein the first clearing bank checks that the first cash in the affirmed matched settlement instructions is available;
receiving a confirmation of a blockage of the first cash from the first clearing bank;
sending the affirmed matched settlement instructions to a second clearing bank, wherein the second clearing bank checks that the second cash in the affirmed matched settlement instructions is available;
receiving a confirmation of a blockage of the second cash from the second clearing bank;
confirming that the affirmed settlement instructions have not expired;
executing an exchange of tokens for the first cash for tokens for the second cash; and
writing the tokens for the second cash to a wallet for the first party and writing the tokens for the first cash to a wallet for the second party, wherein:
the wallet for the first party and the wallet for the second party are maintained on a blockchain-based system;
the tokens for the first cash and the tokens for the second cash are generated by the blockchain-based system in which a consensus algorithm operating on a plurality of distributed computer nodes updates a distributed ledger in which multiple copies of the distributed ledger exist across the plurality of distributed computer nodes;
the tokens for the first cash and the tokens for the second cash are added to a block in the blockchain-based system according to the consensus algorithm, and
writing the tokens for the first cash to the wallet for the first party and writing the tokens for the second cash to the wallet for the second party comprises adding a new block to the blockchain-based system.

2. The method of claim 1 , wherein the first clearing bank tokenizes the first cash in response to receiving the affirmed settlement instructions.

3. The method of claim 2 , wherein the first clearing bank writes the tokens for the first cash to the blockchain-based system.

4. The method of claim 2 , wherein the first clearing bank adds the tokens for the first cash to the smart contract.

5. The method of claim 1 , wherein the second clearing bank tokenizes the second cash in response to receiving the affirmed settlement instructions.

6. The method of claim 5 , wherein the second clearing bank writes the tokens for the second cash to the blockchain-based system.

7. The method of claim 5 , wherein the second cash clearing bank adds the tokens for the second cash to the smart contract.

8. The method of claim 1 , further comprising:
redeeming the tokens for the first cash for the first party or redeeming the tokens for the second cash for the second party.

9. A system for distributed ledger based settlement, comprising:
a first clearing bank;
a second clearing bank; and
an exchange server comprising at least one exchange computer processor coupled with an exchange computer memory storing executing an exchange computer program, wherein:
the exchange computer program receives a first settlement instruction from a first party to a transaction involving a transfer of first cash for second cash, wherein the first party is providing the first cash;
the exchange computer program receives a second settlement instruction from a second party to the transaction, wherein the second party is providing the second cash;
the exchange computer program retrieves a matching key that specifies one or more fields in the first settlement instruction and the second settlement instruction that must match, wherein the one or more fields comprises a quantity and a price;
the exchange computer program matches the first settlement instruction and the second settlement instruction using the one or more fields specified by the matching key;
the exchange computer program affirms the matched settlement instructions with the first party and the second party;
the exchange computer program executes a smart contract sending the affirmed matched settlement instructions to a first clearing bank;
the first clearing bank checks that the first cash in the affirmed matched settlement instructions is available;
the first clearing bank blocks the first cash and confirms a blockage to the exchange computer program;
the exchange computer program executes the smart contract sending the affirmed matched settlement instructions to the second clearing bank;
the second clearing bank checks that the second cash in the affirmed matched settlement instructions is available;
the second clearing bank blocks the second cash and confirms a blockage to the exchange computer program;
the exchange computer program executes the smart contract confirming that the affirmed settlement instructions have not expired;
the exchange computer program executes an exchange of tokens for the first cash for tokens for the second cash; and
the exchange computer program executes the smart contract writing the tokens for the second cash to a wallet for the first party and writing the tokens for the first cash to a wallet for the second party, wherein:
the wallet for the first party and the wallet for the second party are maintained on a blockchain-based system;
the tokens for the first cash and the tokens for the second cash are generated by the blockchain-based system in which a consensus algorithm operating on a plurality of distributed computer nodes updates a distributed ledger in which multiple copies of the distributed ledger exist across the plurality of distributed computer nodes;
the tokens for the first cash and the tokens for the second cash are added to a block in the blockchain-based system according to the consensus algorithm; and
writing the tokens for the first cash to the wallet for the first party and writing the tokens for the second cash to the wallet for the second party comprises adding a new block to the blockchain-based system.

10. The system of claim 9 , wherein the first clearing bank tokenizes the first cash in response to receiving the affirmed settlement instructions.

11. The system of claim 10 , wherein the first clearing bank writes the tokens for the first cash to the blockchain-based system.

12. The system of claim 10 , wherein the first clearing bank adds the tokens for the first cash to the smart contract.

13. The system of claim 9 , wherein the second clearing bank tokenizes the second cash in response to receiving the affirmed settlement instructions.

14. The system of claim 13 , wherein the second clearing bank writes the tok

Assignees

• Jpmorgan Chase Bank Na

Inventors

• Margolis Oliver
• Lobban Tyrone
• Amlin Mark
• Fichet Marc-Antoine
• Lovell Andrew
• Thomas Paul
• Mor Viresh
• Crocker John-Paul Antony
• Moy Christine

Classifications

• G06Q20/108

  Remote banking, e.g. home banking · CPC title

• G06Q20/02

  involving a neutral party, e.g. certification authority, notary or trusted third party [TTP] · CPC title

• G06Q20/367 Primary

  involving electronic purses or money safes · CPC title

• G06Q40/04 Primary

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