Tokenization Platform for Private Market Liquidity

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Solution Overview

Problem

Private capital markets face challenges due to the lack of liquidity, as traditional solutions fail to provide efficient mechanisms for commitments, capital calls, and asset representation.

Innovation Solution

A computer-implemented method and system for creating and administering security tokens representing resource sources, using an API to receive instructions, generate tokens based on variables and protocols, and manage token transactions, including minting, transferring, and destroying tokens within a token transaction ledger.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If traditional technical solutions are used to represent private market assets, then asset representation is provided, but liquidity and access to private markets remain limited

Engineering Contradiction:

Improveaccess to private marketsVSAvoidliquidity of private markets

Core Design Contradiction:

Adaptability or versatilityVSReliability

Solution Approach 1:

The patent creates digital tokens that are cryptographic copies representing ownership of private market assets. These tokens can be transferred, traded, and managed digitally while maintaining the underlying asset value, thereby enabling liquidity and access to private markets without physically transferring the actual assets.

Inventive Principle:

Principle #26Copying

Solution Approach 2:

The patent segments private market assets into divisible digital tokens, allowing fractional ownership and transferability. This segmentation enables investors to purchase and trade portions of private market assets, improving liquidity and accessibility while maintaining the integrity of the underlying assets.

Inventive Principle:

Principle #1Segmentation

2Productivity

If security tokens are created and managed through manual processes, then asset representation is achieved, but efficiency and transaction speed are reduced

Engineering Contradiction:

Improveefficiency of token creation and managementVSAvoidtransaction processing time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The patent implements smart contracts that automatically execute token creation, transfer, and management operations without manual intervention. The system self-manages the entire token lifecycle, from minting to transfer to destruction, significantly improving efficiency and reducing transaction processing time.

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces manual mechanical processes with automated digital systems and algorithms. Token creation, verification, and management are performed through computer-implemented methods rather than manual procedures, dramatically increasing productivity and reducing time loss.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

3Ease of operation

If tokens are administered to third parties without automated verification, then distribution is simplified, but security and payment verification are compromised

Engineering Contradiction:

Improvetoken distribution processVSAvoidpayment verification security

Core Design Contradiction:

Ease of operationVSReliability

Solution Approach 1:

The patent incorporates automated feedback mechanisms where the system continuously verifies payment status and token eligibility before administering tokens to third parties. The smart contracts receive feedback from the verification process and automatically adjust token distribution accordingly, maintaining both ease of operation and security.

Inventive Principle:

Principle #23Feedback

Solution Approach 2:

The patent introduces an automated verification intermediary layer between token distribution requests and execution. This intermediary systematically verifies payments and compliance before allowing token administration, ensuring security while maintaining operational efficiency through automation.

Inventive Principle:

Principle #24Intermediary (Mediator)

4Reliability

If comprehensive protocols are created for each token based on specific variables, then security and compliance are improved, but system complexity increases

Engineering Contradiction:

Improvesecurity and compliance of tokensVSAvoidprotocol creation system

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent creates a universal smart contract framework that can handle multiple token types and compliance requirements through a single standardized system. The same core protocol structure adapts to different variables and security requirements, reducing overall system complexity while maintaining comprehensive security and compliance capabilities.

Inventive Principle:

Principle #6Universality (Multi-functionality)

Data Source

PatentUS20250139624A1Systems and methods for a secure tokenization platform

Publication Date: 2025.05.01 FIDELITY INFORMATION SERVICES LLC

AI summary

A computer-implemented method for creating and administering a security token representing a resource source. The method includes: receiving as instructions to create a first resource source on a platform; receiving as input, variables related to the first resource source; creating, a set of protocols based on the variables; generating, one or more tokens based on the received variables and protocol; wherein generating the one or more tokens includes: generating and recording a first transaction in a token transaction ledger; and administering a portion of the one or more tokens to a third party, the administering further including: receiving a request for a purchase of a portion of the one or more tokens; verifying payment for the portion of the one or more tokens; minting a set of tokens; transferring the set of tokens to the third party; and destroying the portion of the one or more tokens from the platform.