US Patent YOUB et al. ABSTRACT
11188977 (uspto.gov) Link to the published patent for download
A method for creating an asset-backed distributed ledger token representing a smart contract, the token being backed by a pledge of an illiquid form of a precursor or means of production of a commodity asset, comprising receiving a pledge of unrefined or pre-commodity asset, digitizing the unrefined commodity asset into fractional representations of the commodity asset using smart contracts on a distributed ledger network, and allowing account holders access to the perform transactions on the distributed ledger network to trade the fractional representations under the terms of the smart contract.
- Global Golden Dragon Corporation Pte Ltd (Singapore) has an exclusive Master license to the patent, with the right of licensing to third parties.
- The patent covers (amongst others):
Tokenization & securitization of illiquid assets,
‘Creating a liquid token representation of an illiquid asset’
‘Digitizing an illiquid asset into fractional representations’ - Illiquid assets description for our purposes: everything that is not a currency (crypto or fiat) or any asset/commodity not traded on a public financial exchange.
- The key idea of tokenization is not the trade of cryptocurrency, but the creation of a modern and transparent mechanism for monetizing/digitizing assets and to allow for generating funds/investments in almost any currency (crypto/fiat).
- Applications have been filed with WIPO/PCT, and also for the European area under no: EP3593305 (European Patent Register). PCT has now 155 contracting states, who have ratified and have accepted the regulations of PCT (Patent Cooperation Treaty).
- Utilizing the inherent integrity of the blockchain in asset monetization/tokenization and fractionalization
- Proven technology and methodology
- Monetization of illiquid assets including real estate, resources, agriculture, inventory, art, precious stones, other collectibles
- Decentralisation of smart contracts and tokenization for debt issuance, including mortgages, collateralization, options, forward contracts , leasing and other instruments and the fractionalization thereof
- Performance with regulatory and security compliance
- Be compliant with requirements of law and regulators
- Being non-compliant is not an option for anyone in finance sector
- Immutable records of ownership
- Permanent and tamper proof historical data storage
- Liquidity 24/7 via digital platforms
- Security, storage and continuity through time