IP Library › Granted Patent US 12,469,079

Granted Patent B2

US 12,469,079 · App. 18/327,528 · Granted Nov 11, 2025

Crypto multiple security asset creation and redemption platform

Inventors: Alec Wilkins (Salt Lake City, UT); Robert Christensen (Sandy, UT); John Wesley Welborn (Arlington, VA); John Tabacco (Jersey City, NJ); Glen Nickle (Logan, UT)

Assignee: tZERO IP, LLC

G06Q40/04 H04L9/0637 H04L9/14 H04L9/30 H04L9/3236 H04L9/3247 G06Q2220/00 H04L9/50 H04L2209/56

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Quick Facts

Patent No.: US 12,469,079
App. No.: 18/327,528
Granted: Nov 11, 2025
Kind: B2

External Links

USPTO Patent Center↗ Full Patent PDF↗

Abstract

An asset trading system utilizing a distributed ledger and configured to: when a creation request to create a digital fund token representing at least one share of a fund having a plurality of different assets (i) is received, (ii) is electronically signed with a private key associated with a first addressed account, and (iii) indicates a composition of the at least one share of the fund: place the plurality of different assets represented by the at least one share of the fund into an escrow account; create the digital fund token, wherein the digital fund token indicates the composition of the share of the fund; and record the creation of the digital fund token on a distributed ledger.

Claims (94)

1 . A computer implemented cryptographic asset trading system comprising:

circuitry configured to:

receive a creation request (i) including a digital signature of a first cryptographic key associated with a first account and (ii) including a composition of at least one share of a fund, the composition of the at least one share of the fund including a respective quantity of each of a plurality of different assets in the at least one share of the fund; and

in response to receiving the creation request:

place the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into an escrow account associated with the computer implemented cryptographic asset trading system as collateral for a digital fund token serving as a digital representation of the fund;

create and transfer the digital fund token to the first account (i) by cryptographically signing with a second cryptographic key associated with the computer implemented cryptographic asset trading system and (ii) based on the respective quantity of each of the plurality of different assets, the digital fund token including the composition of the at least one share of the fund, the composition of the at least one share of the fund including the respective quantity of each of the plurality of different assets in the at least one share of the fund represented by the digital fund token; and

record the creation and transfer of the digital fund token to the first account on a distributed ledger thereby requiring cryptographic signing with the first cryptographic key associated with the first account to: (i) redeem the digital fund token from the first account or (ii) transfer the digital fund token from the first account to a second account.

2 . The computer implemented cryptographic asset trading system of claim 1 , wherein the circuitry is further configured to:

in response to receiving the creation request and prior to creating the digital fund token:

receive confirmation from the distributed ledger that the plurality of different assets represented by the at least one share of the fund are associated with the first account.

3 . The computer implemented cryptographic asset trading system of claim 1 , wherein the circuitry is further configured to:

in response to receiving the creation request and prior to creating the digital fund token:

create a plurality of digital tokens representing the plurality of different assets; and

record the creation of the plurality of digital tokens on the distributed ledger; and

in response to receiving the creation request and as part of creating the digital fund token:

place the plurality of digital tokens representing the plurality of different assets into an escrow state; and

record the escrow state of the plurality of digital tokens representing the plurality of different assets on the distributed ledger.

4 . The computer implemented cryptographic asset trading system of claim 1 , wherein the circuitry is further configured to:

receive a redemption request including the digital signature of the first cryptographic key associated with the first account; and

in response to receiving the redemption request:

release the plurality of different assets represented by the at least one share of the fund from the escrow account;

destroy the digital fund token; and

record the destruction of the digital fund token on the distributed ledger.

5 . The computer implemented cryptographic asset trading system of claim 4 , wherein the circuitry is further configured to:

in response to receiving the redemption request and prior to destroying the digital fund token:

remove a plurality of digital tokens representing the plurality of different assets from an escrow state; and

record the removal of the plurality of digital tokens representing the plurality of different assets from the escrow state on the distributed ledger.

6 . The computer implemented cryptographic asset trading system of claim 1 , wherein the circuitry is further configured to:

receive a transfer request including the digital signature of the first cryptographic key associated with the first account; and

in response to receiving the transfer request:

transfer the digital fund token from the first account to the second account; and

record the transfer of the digital fund token from the first account to the second account on the distributed ledger.

7 . The computer implemented cryptographic asset trading system of claim 1 , wherein the circuitry is further configured to:

place the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into the escrow account as collateral for the digital fund token includes placing a quantity of at least one of an exchange traded fund, a mutual fund, an index fund, a bond fund, a commodity fund, a currency fund, and a real estate fund into the escrow account as collateral for the digital fund token.

8 . A method comprising:

receiving, using circuitry, a creation request (i) including a digital signature of a first cryptographic key associated with a first account and (ii) including a composition of at least one share of a fund, the composition of the at least one share of the fund including a respective quantity of each of a plurality of different assets in the at least one share of the fund; and

in response to receiving the creation request:

placing, using the circuitry, the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into an escrow account associated with a computer implemented cryptographic asset trading system as collateral for a digital fund token serving as a digital representation of the fund;

creating and transferring, using the circuitry, the digital fund token to the first account (i) by cryptographically signing with a second cryptographic key associated with the computer implemented cryptographic asset trading system and (ii) based on the respective quantity of each of the plurality of different assets, the digital fund token including the composition of the at least one share of the fund, the composition of the at least one share of the fund including the respective quantity of each of the plurality of different assets in the at least one share of the fund represented by the digital fund token; and

recording, using the circuitry, the creation and transfer of the digital fund token to the first account on a distributed ledger thereby requiring cryptographic signing with the first cryptographic key associated with the first account to: (i) redeem the digital fund token from the first account or (ii) transfer the digital fund token from the first account to a second account.

9 . The method of claim 8 , further comprising:

in response to receiving the creation request and prior to creating the digital fund token:

receiving, using the circuitry, confirmation from the distributed ledger that the plurality of different assets represented by the at least one share of the fund are associated with the first account.

10 . The method of claim 9 , further comprising:

in response to receiving the creation request and prior to creating the digital fund token:

creating, using the circuitry, a plurality of digital tokens representing the plurality of different assets; and

recording, using the circuitry, the creation of the plurality of digital tokens on the distributed ledger; and

in response to receiving the creation request and as part of creating the digital fund token:

placing, using the circuitry, the plurality of digital tokens representing the plurality of different assets into an escrow state; and

recording, using the circuitry, the escrow state of the plurality of digital tokens representing the plurality of different assets on the distributed ledger.

11 . The method of claim 8 , further comprising:

receiving, using the circuitry, a redemption request including the digital signature of the first cryptographic key associated with the first account; and

in response to receiving the redemption request:

releasing, using the circuitry, the plurality of different assets represented by the at least one share of the fund from the escrow account;

destroying, using the circuitry, the digital fund token; and

recording, using the circuitry, the destruction of the digital fund token on the distributed ledger.

12 . The method of claim 11 , further comprising:

in response to receiving the redemption request and prior to destroying the digital fund token:

removing, using the circuitry, a plurality of digital tokens representing the plurality of different assets from an escrow state; and

recording, using the circuitry, the removal of the plurality of digital tokens representing the plurality of different assets from the escrow state on the distributed ledger.

13 . The method of claim 8 , further comprising:

receiving, using the circuitry, a transfer request including the digital signature of the first cryptographic key associated with the first account; and

in response to receiving the transfer request:

transferring, using the circuitry, the digital fund token from the first account to the second account; and

recording, using the circuitry, the transfer of the digital fund token on the distributed ledger.

14 . The method of claim 8 , wherein placing the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into the escrow account as collateral for the digital fund token includes placing a quantity of at least one of an exchange traded fund, a mutual fund, an index fund, a bond fund, a commodity fund, a currency fund, and a real estate fund into the escrow account as collateral for the digital fund token.

15 . A non-transitory computer-readable storage medium including a set of instructions that, when executed by programmable circuitry, cause the programmable circuitry to:

in response to receiving the creation request:

place the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into an escrow account associated with a computer implemented cryptographic asset trading system as collateral for a digital fund token serving as a digital representation of the fund;

16 . The non-transitory computer-readable storage medium of claim 15 , wherein the instructions, when executed by the programmable circuitry, further cause the programmable circuitry to:

in response to receiving the creation request and prior to creating the digital fund token:

receive confirmation from the distributed ledger that the plurality of different assets represented by the at least one share of the fund are associated with the first account.

17 . The non-transitory computer-readable storage medium of claim 16 , wherein the instructions, when executed by the programmable circuitry, further cause the programmable circuitry to:

in response to receiving the creation request and prior to creating the digital fund token:

create a plurality of digital tokens representing the plurality of different assets; and

record the creation of the plurality of digital tokens on the distributed ledger; and

in response to receiving the creation request and as part of creating the digital fund token:

place the plurality of digital tokens representing the plurality of different assets into an escrow state; and

record the escrow state of the plurality of digital tokens representing the plurality of different assets on the distributed ledger.

18 . The non-transitory computer-readable storage medium of claim 17 , wherein the instructions, when executed by the programmable circuitry, further cause the programmable circuitry to:

receive a redemption request including the digital signature of the first cryptographic key associated with the first account; and

in response to receiving the redemption request:

release the plurality of different assets represented by the at least one share of the fund from the escrow account;

destroy the digital fund token; and

record the destruction of the digital fund token on the distributed ledger.

19 . The non-transitory computer-readable storage medium of claim 18 , wherein the instructions, when executed by the programmable circuitry, further cause the programmable circuitry to:

in response to receiving the redemption request and prior to destroying the digital fund token:

remove a plurality of digital tokens representing the plurality of different assets from an escrow state; and

record the removal of the plurality of digital tokens representing the plurality of different assets from the escrow state on the distributed ledger.

20 . The non-transitory computer-readable storage medium of claim 15 , wherein the instructions, when executed by the programmable circuitry, cause the programable circuitry to:

place the respective quantity of each of the plurality of different assets represented by the at least one share of the fund into the escrow account as collateral for the digital fund token by placing a quantity of at least one of an exchange traded fund, a mutual fund, an index fund, a bond fund, a commodity fund, a currency fund, and a real estate fund into the escrow account as collateral for the digital fund token.

Assignments (9)