Granted Patent B2

US 12,657,578 · App. 18/177,687 · Granted Jun 16, 2026

Inventors: Naveen Mallela (Singapore, SG); Gourang Shah (Singapore, SG); Varoon Mandhana (Singapore, SG); Martijn Stoker (Singapore, SG); Manoj Dugar (Singapore, SG); Abhijit Gupta (Singapore, SG)

Assignee: JPMORGAN CHASE BANK, N.A.

G06Q20/3678G06Q20/10G06Q2220/00

Abstract

Claims (38)

1 . A method for distributed-ledger based intercompany netting, comprising:

in an information processing apparatus comprising at least one computer processor:

receiving, from a first entity within an organization, a deposit of a first amount of fiat currency funds to a first account for storing a fiat currency, wherein the first amount of funds are tokenized with a one-to-one correspondence with a base currency;

restricting access to the first amount of funds in the first account after the first amount of fiat currency funds is tokenized;

receiving a surrender of a surrender token amount from the first entity;

deducting the surrender token amount from a first wallet, wherein the surrender token in the first wallet corresponding to the surrender token amount are destroyed in response to the deduction;

writing the deduction for the first wallet to a distributed ledger;

releasing the restriction on the surrender amount of funds in the first account;

executing, in response to a transaction, a tokenization smart contract, wherein the tokenization smart contract increases or decreases tokenization of the first amount of fiat currency funds to digital token funds and writing the first amount of digital token funds to the first wallet for the first entity on the distributed ledger;

receiving, from a second entity within an organization, a deposit of a second amount of fiat currency funds to a second account for storing the fiat currency;

tokenizing the second amount of fiat currency funds to digital token funds and writing the second amount of digital token funds to a second wallet for the second entity on the distributed ledger; and

executing a transaction involving a transfer of a transaction amount from the first entity to the second entity by deducting the transaction amount of digital token funds from a token balance in the first wallet and adding the transaction amount of digital token funds to a token balance in the second wallet, wherein the distributed ledger comprises a blockchain network, the blockchain network recording each transaction immutably using cryptographic validation; wherein the tokenization smart contract and transaction execution utilize zero-knowledge cryptographic proofs; wherein the blockchain network provides a real-time audit trail of token movements and enforces settlement finality for each transaction; and wherein the blockchain network includes a zero-knowledge security layer.

2 . The method of claim 1 , further comprising:

reconciling the first account and the second account based on the balances in the first wallet and the second wallet, respectively.

3 . The method of claim 1 , wherein deducting the transaction amount from a token balance in the first wallet and adding the transaction amount to a token balance in the second wallet is performed by a smart contact.

4 . The method of claim 1 , wherein the first entity, the second entity, and a financial institution are nodes in a distributed ledger network and each maintain a copy of the distributed ledger.

5 . The method of claim 1 , wherein the first account or the second account comprises an escrow account.

6 . The method of claim 1 , wherein the first account or the second account comprises a treasury omnibus account.

7 . A system for distributed-ledger based intercompany netting, comprising:

a first entity within an organization;

a second entity within an organization; and

a financial institution that maintains a first account for the first entity, and a second account for the second entity, wherein the first account and the second account are configured to store a fiat currency;

wherein:

the financial institution receives a deposit of a first amount of fiat currency funds to the first account from the first entity;

in response to a first transaction, a tokenization smart contract executes, wherein the tokenization smart contract increases or decreases tokenization of the first amount of fiat currency funds to digital token funds and writes the first amount of digital token funds to a first wallet for the first entity on a distributed ledger;

the financial institution restricts the first amount of funds in the first account after the first amount of funds is tokenized, wherein the restriction restricts access to the first amount of fiat currency funds in the account;

the financial institution receives a deposit of a second amount of fiat currency funds to the second account from the second entity, wherein the first amount of fiat currency funds and the second amount of fiat currency funds are tokenized with a one-to-one correspondence with a base currency;

the financial institution tokenizes the second amount of fiat currency funds and writes the second amount of digital token funds to a second wallet for the second entity on the distributed ledger;

the first entity writes a transaction involving a transfer of a transaction amount from the first entity to the second entity to the distributed ledger;

the financial institution receives a surrender of a surrender token amount from the first entity; the smart contract deducts the surrender token amount from the first wallet, wherein the tokens in the first wallet corresponding to the surrender amount are destroyed or deleted in response to the deduction; the financial institution releases the restriction on the surrender amount of funds in the first account;

the financial institution receives a surrender of a surrender token amount from the first entity;

the smart contract deducts the surrender token amount from the first wallet, wherein the tokens in the first wallet corresponding to the surrender amount are destroyed or deleted in response to the deduction;

the financial institution releases the restriction on the surrender amount of funds in the first account; and

the smart contract executed by the distributed ledger deducts the transaction amount of digital token funds from a token balance in the first wallet and adds the transaction amount of digital token funds to a token balance in the second wallet, wherein the distributed ledger comprises a blockchain network, the blockchain network recording each transaction immutably using cryptographic validation; wherein the tokenization smart contract and transaction execution utilize zero-knowledge cryptographic proofs; wherein the blockchain network provides a real-time audit trail of token movements and enforces settlement finality for each transaction; and wherein the blockchain network includes a zero-knowledge security layer.

8 . The system of claim 7 , wherein a smart contract writes the deduction for the first wallet to the distributed ledger.

9 . The system of claim 7 , wherein the financial institution reconciles the first account and the second account based on the balances in the first wallet and the second wallet, respectively.

10 . The system of claim 7 , wherein the first entity, the second entity, and the financial institution are nodes in a distributed ledger network and each maintains a copy of the distributed ledger.

11 . The system of claim 7 , wherein the first account or the second account comprises an escrow account.

Assignments (1)

Continuity (3)

References Cited (10)