Cryptographic currency for securities settlement

Patent metadata

Field	Value
Publication number	US-12437275-B2
Application number	US-202218059164-A
Country	US
Kind code	B2
Filing date	Nov 28, 2022
Priority date	May 16, 2014
Publication date	Oct 7, 2025
Grant date	Oct 7, 2025

Abstract

The present disclosure is directed to security settlement in financial markets and cryptographic currencies. Particular portions of the present disclosure are directed to a cryptographic currency protocol and to a cryptographic currency that includes a positional item. The cryptographic currency protocol supports a virtual wallet that, in various embodiments, is a security and cash account for storing and managing the cryptographic currency. Opening a transaction via the virtual wallet to transfer the cryptographic currency is a strong guarantee of the availability of funds in the virtual wallet because, e.g., funds are not transacted unless the commit phase is successful.

First claim

We claim:

1. A computer-implemented method comprising:
receiving, at a first computing node in a network, electronic transaction messages initiating a transaction involving an exchange of (i) a first cryptographic currency representing a first asset owned by a first user and (ii) a second cryptographic currency representing a second asset owned by a second user;
receiving, at the first computing node from second computing nodes in the network, electronic verification messages providing external verification that the first user owns the first cryptographic currency and the second user owns the second cryptographic currency;
initiating, by the first computing node, updates to copies of at least one ledger at the first and second computing nodes to reflect (i) a change in ownership of the first cryptographic currency from the first user to the second user and (ii) a change in ownership of the second cryptographic currency from the second user to the first user; and
in response to determining that at least one copy of the at least one ledger at the first computing node identifies at least a threshold number of prior transactions involving the first cryptographic currency, reducing a size of the at least one copy of the at least one ledger at the first computing node by compressing or condensing a subset of ledger entries related to at least some of the prior transactions using a verifiable hash;
wherein at least one of the first asset or the second asset represents a security.

2. The computer-implemented method of claim 1 , wherein:
a first of the transaction messages comprises an identification of the first asset using (i) an identification of a first positional item inside cryptographic currency (PIC) and (ii) a first position that the first user has in the first PIC and that is subject to the exchange; and
a second of the transaction messages comprises an identification of the second asset using (i) an identification of a second PIC and (ii) a second position that the second user has in the second PIC and that is subject to the exchange.

3. The computer-implemented method of claim 2 , wherein:
the first transaction message further comprises a digital signature associated with the first user, an electronic address associated with the second user, and an order type associated with the first transaction message; and
the second transaction message further comprises a digital signature associated with the second user, an electronic address associated with the first user, and an order type associated with the second transaction message.

4. The computer-implemented method of claim 2 , wherein:
the first transaction message further comprises at least part of an ownership history of the first cryptographic currency; and
the second transaction message further comprises at least part of an ownership history of the second cryptographic currency.

5. The computer-implemented method of claim 4 , wherein at least one of:
the first transaction message comprises a first portion of the ownership history of the first cryptographic currency and a hash of a second portion of the ownership history of the first cryptographic currency; or
the second transaction message comprises a first portion of the ownership history of the second cryptographic currency and a hash of a second portion of the ownership history of the second cryptographic currency.

6. The computer-implemented method of claim 1 , further comprising:
verifying, using the at least one copy of the at least one ledger at the first computing node, that the first user owns the first cryptographic currency and the second user owns the second cryptographic currency; and
updating the at least one copy of the at least one ledger by the first computing node to reflect (i) the change in the ownership of the first cryptographic currency from the first user to the second user and (ii) the change in the ownership of the second cryptographic currency from the second user to the first user.

7. The computer-implemented method of claim 1 , further comprising at least one of:
removing the first cryptographic currency from a virtual wallet of the first user and storing the second cryptographic currency in the virtual wallet of the first user; or
removing the second cryptographic currency from a virtual wallet of the second user and storing the first cryptographic currency in the virtual wallet of the second user.

8. The computer-implemented method of claim 1 , wherein:
one of the first and second assets represents the security; and
another of the first and second assets represents cash or a cash equivalent.

9. The computer-implemented method of claim 1 , further comprising:
in response to determining that one of the first cryptographic currency or the second cryptographic currency has no ownership history in the at least one ledger, interacting with a trusted node to verify that the first user owns the first cryptographic currency and the second user owns the second cryptographic currency.

10. The method of claim 1 , wherein at least the first computing node is used as at least part of a two-phase commitment protocol that ensures both the first and second users are ready to send respective electronic transaction messages, the two-phase commitment protocol including:
a commitment request phase that prepares at least the first node to exchange the first and second cryptographic currencies; and
a commit phase that involves use of the electronic transaction messages.

11. A non-transitory computer-readable storage device having contents adapted to cause one or more processors to perform operations comprising:
receiving, at a first computing node in a network, electronic transaction messages initiating a transaction involving an exchange of (i) a first cryptographic currency representing a first asset owned by a first user and (ii) a second cryptographic currency representing a second asset owned by a second user;
receiving, at the first computing node from second computing nodes in the network, electronic verification messages providing external verification that the first user owns the first cryptographic currency and the second user owns the second cryptographic currency;
initiating, by the first computing node, updates to copies of at least one ledger at the first and second computing nodes to reflect (i) a change in ownership of the first cryptographic currency from the first user to the second user and (ii) a change in ownership of the second cryptographic currency from the second user to the first user; and
in response to determining that at least one copy of the at least one ledger at the first computing node identifies at least a threshold number of prior transactions involving the first cryptographic currency, reducing a size of the at least one copy of the at least one ledger at the first computing node by compressing or condensing a subset of ledger entries related to at least some of the prior transactions using a verifiable hash;
wherein at least one of the first asset or the second asset represents a security.

12. The non-transitory computer-readable storage device of claim 11 , wherein:
a first of the transaction messages comprises an identification of the first asset using (i) an identification of a first positional item inside cryptographic currency (PIC) and (ii) a first position that the first user has in the first PIC and that is subject to the exchange; and
a second of the transaction messages comprises an identification of the second asset using (i) an identification of a second PIC and (ii) a second position that the second user has in the second PIC and that is subject to the exchange.

Assignees

• Goldman Sachs & Co Llc

Inventors

• Walker Paul
• Venables Phil J

Classifications

• H04L9/50

  using hash chains, e.g. blockchains or hash trees · CPC title

• H04L63/126

  the source of the received data · CPC title

• H04L9/30

  Public key, i.e. encryption algorithm being computationally infeasible to invert or user's encryption keys not requiring secrecy · CPC title

• H04L9/3236

  using cryptographic hash functions · CPC title

• H04L2209/56

  Financial cryptography, e.g. electronic payment or e-cash · CPC title