Crypto integration platform

• US 10,171,245 B2
• Filed: 02/05/2016
• Issued: 01/01/2019
• Est. Priority Date: 02/09/2015
• Status: Active Grant

• Current Assignee: tZERO IP LLC (Overstock.com Incorporated)
• Original Assignee: t0.com, Inc.
• Inventors: Wilkins, Alec, Fish, Eric Nathaniel, Larson, Trent Norman, Byrne, Patrick M.
• Primary Examiner(s): Bechtel, Kevin
• Assistant Examiner(s): Tran, Vu V
• Application Number:
  US15/017,359
• Publication Number:
  US 20160234026A1
• Time in Patent Office: 1,061 Days
• CPC Class Codes: G06F 21/64 Protecting data integrity, e.g. using checksums, certificates or signatures
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 2463/102 applying security measure for e-commerce data processing systems or methods, specially adapted for e-commerce G06Q30/00
• CPC Class Codes: H04L 63/126 the source of the received data
• CPC Class Codes: H04L 9/3247 involving digital signatures

Abstract

Methods and systems described herein create a first addressed account and a second addressed account that each have a common identifier and are each associated with a customer. The system can receive an order for exchanging digital transactional items associated with the first addressed account, where the order is associated with the common identifier. A private key associated with the first addressed account can be used to electronically sign a first transaction to transfer the digital transactional items from the first addressed account to the second addressed account, and the same private key can be used to sign a second transaction. After verifying that the first transaction was signed with the same private key as the first transaction, the system authorizes placement of the order on a cryptographic exchange.

Claims

1. A computerized method comprising:

creating, by a computer, a first account and a second account for a first customer, the first account having a first address and at least a first private key corresponding with the first account, the second account having a second address and at least a second private key corresponding with the second account, each of the first account and the second account having a common customer identifier associated with the first customer;

receiving, from a remote computing device, an order for exchanging one or more digital transactional items associated with the first account, wherein the order is associated with the common customer identifier;

electronically signing, with the at least the first private key corresponding with the first account, a first transaction to transfer the one or more digital transactional items from the first account to the second account, wherein the one or more digital transactional items are transferred from the first account to the second account once the first transaction is electronically signed by the at least the first private key, wherein the one or more digital transactional items in the second account are committed for use in the order for exchanging the one or more digital transaction items;

electronically signing, with the at least the first private key corresponding with the first account, a second transaction to use the one or more digital transaction items in the order for exchanging the one or more digital transactional items;

verifying that both the first transaction and the second transaction were signed with the at least the first private key to verify that the one or more digital transaction items are committed and available for the order exchanging the one or more digital transactional items; and

authorizing placement of the order on a cryptographic exchange upon verifying that both the first transaction and the second transaction were signed with the at least the first private key.

2. The computerized method of claim 1, wherein the first account has a first key pair corresponding with the first account, which includes a first public key and the first private key;

and

wherein the second account has a second key pair corresponding with the second account, which includes a second public key and the second private key.

3. The computerized method of claim 1, further comprising:

wherein the first account has a first key pair corresponding with the first account, which includes a first public key and the first private key;

receiving confirmation, from a distributed ledger, that the one or more digital transactional items associated with the order are associated with the first account by using the first public key; and

upon receiving the confirmation that the one or more digital transactional items associated with the order are associated with the first account, creating the first transaction and the second transaction.

4. The computerized method of claim 1, further comprising:

communicating, to a distributed ledger, a balance of the first account and the second account.

5. The computerized method of claim 1, wherein the order is an order to purchase a digital asset or a digital liability, the computerized method further comprising:

receiving, from the remote computing device, information indicating that funds are available to purchase the digital asset or the digital liability, wherein the one or more digital transactional items is a digital representation of the funds; and

associating the digital representation of the funds with the first account as the one or more digital transactional items.

6. The computerized method of claim 1, wherein the order is an order to sell the one or more digital transactional items, wherein the one or more digital transactional items is one or more digital assets or one or more digital liabilities, the computerized method further comprising:

receiving, from the remote computing device, information indicating that assets corresponding with the one or more digital assets or liabilities corresponding with the one or more digital liabilities are available to sell.

7. The computerized method of claim 1, further comprising:

creating a third account, wherein the third account has a first key pair corresponding with the first account and a second key pair corresponding with the second account.

8. The computerized method of claim 1, further comprising:

creating the first transaction, wherein the first transaction includes at least one of;

the one or more digital transactional items, the common customer identifier, and a public key of the second account;

creating a hash of the first transaction; and

creating the second transaction, wherein the second transaction includes at least one of;

a type of the order, the common customer identifier, a public key of the second account, and the hash of the first transaction.

9. The computerized method of claim 1, further comprising:

sending the first transaction to the cryptographic exchange; and

sending the second transaction to an alternative trading system.

10. The computerized method of claim 9, further comprising:

receiving a notification that the order has been matched to a second order on the cryptographic exchange; and

creating an execution report.

11. The computerized method of claim 1, wherein the first account is a customer portfolio account, wherein the second account is a customer committed account.

12. The computerized method of claim 1, wherein the first transaction includes at least one of:

funds in an amount corresponding to a value of the first transaction or a representation of the funds in the amount corresponding to the value of the first transaction and a public key of the first account, and wherein the second transaction includes at least one of;

a public key of the second account, a type of the order, the common customer identifier, a public key of the second account, and a hash of the first transaction.

13. The computerized method of claim 1, wherein the one or more digital transaction items include tokenized assets.

14. The computerized method of claim 1, wherein the one or more digital transactional items are selected from at least one of:

tokens, cash, cash equivalents, crypto currencies, digitized dollars, digital assets, digital liabilities, digital shares of stocks, securities, and digital funds.

15. A computerized method comprising

receiving, from a broker-dealer, a request to match a buy transaction with a sell transaction,

wherein the buy transaction includes a buy order to purchase one or more digital transactional items for an amount corresponding to a value of the one or more digital transactional items and the sell transaction includes a sell order to sell the one or more digital transactional items for the amount,

wherein the buy transaction has a first signature of a first private key corresponding with a first account that identifies the buy order, wherein the sell transaction has a second signature of a second private key corresponding with a second account that identifies the sell order, the first account being associated with a first customer and the second account being associated with a second customer,

wherein the amount is associated with a third account associated with the first customer, wherein the amount associated with the third account is committed for use in the buy order, wherein the amount was transmitted from the first account to the third account in a transaction signed by the first private key, and

wherein the one or more digital transactional items are associated with a fourth account associated with the second customer, wherein the one or more digital transactional items associated with the fourth account are committed for use in the sell order;

mapping, by a computer, the buy transaction to the third account and the sell transaction to the fourth account;

sending, to the cryptographic exchange, a match request response including the first signature and the second signature to commit the buy transaction; and

transferring the one or more digital transactional items from the fourth account associated with the second customer to the first account associated with the first customer and transferring the amount from the third account associated with the first customer to the second account associated with the second customer to settle and clear the buy transaction and the sell transaction.

16. The computerized method of claim 15, further comprising:

receiving confirmation, from a distributed ledger, that the amount is associated with the third account and that the one or more digital transactional items are associated with the fourth account prior to sending the match request response.

17. The computerized method of claim 15, wherein the one or more digital transactional items include one or more of digital assets or digital liabilities, wherein the amount includes an amount of currency, cryptographic currency, or a representation of the currency or the cryptographic currency corresponding to a value of the one or more digital transactional items.

18. The computerized method of claim 15, further comprising:

publishing, to a remote computing device, results of settling and clearing the buy transaction and the sell transaction.

19. The computerized method of claim 15, wherein:

the first account is a first customer portfolio account associated with the first customer,

the second account is a second customer portfolio account associated with the second customer,

the third account is a first customer committed account associated with the first customer, and

the fourth account is a second customer committed account associated with the second customer.

20. The computerized method of claim 15, wherein the one or more digital transaction items include tokenized assets.

21. The computerized method of claim 15, wherein the one or more digital transactional items are selected from at least one of:

tokens, cash, cash equivalents, crypto currencies, digitized dollars, digital assets, digital liabilities, digital shares of stocks, securities, and digital funds.

22. A cryptographic integration system, comprising:

at least one processor; and

at least one non-transitory computer-readable storage medium having instructions stored thereon, which when executed by the at least one processor causes the cryptographic integration system to;

receive an order to execute a trade for one or more digital transactional items corresponding with a first account, the first account having a first address and at least a first private key corresponding with the first account, wherein the order, the first account, and a second account are associated with a common identifier that identifies a user, the second account having a second address and at least a second private key corresponding with the second account;

generate a first transaction to transfer the one or more digital transactional items from the first account to the second account;

electronically signing the first transaction with the at least the first private key corresponding with the first account, wherein the one or more digital transactional items are transferred from the first account to the second account once the first transaction is electronically signed by the at least the first private key;

generate a second transaction that includes the order;

electronically signing the second transaction with the at least the first private key corresponding with the first addressed account, wherein the one or more digital transaction items in the second account are thereby committed for use in the order to execute the trade for the one or more digital transactional items;

verify that the first transaction was authorized by a same party as the second transaction by verifying that both the first transaction and the second transaction were signed with the at least the first private key indicating that the one or more digital transaction items are committed and available for the order to execute the trade for the one or more digital transactional items; and

authorize placement of the order to execute the trade for the one or more digital transactional item on a cryptographic exchange after verifying that the first transaction was authorized by the same party as the second transaction.

23. The cryptographic integration system of claim 22, wherein the second transaction includes a hash of the first transaction.

24. The cryptographic integration system of claim 22, wherein the instructions, which when executed by the at least one processor further cause the cryptographic integration system to:

receive, from the cryptographic exchange, a request to match the order with a second order, wherein the second order is associated with a second identifier; and

transfer the one or more digital transactional items to an account associated with the second identifier and transfer one or more other digital transactional items into the first account to settle and clear the order.

25. The cryptographic integration system of claim 22, further comprising:

a cryptographic adapter component configured to;

send the first transaction to the cryptographic exchange; and

send the second transaction to an alternative trading system.

26. The cryptographic integration system of claim 22, wherein the one or more digital transaction items include tokenized assets.

27. The cryptographic integration system of claim 22, wherein the one or more digital transactional items are selected from at least one of:

tokens, cash, cash equivalents, crypto currencies, digitized dollars, digital assets, digital liabilities, digital shares of stocks, securities, and digital funds.

28. A non-transitory computer-readable storage medium including a set of instructions that, when executed by one or more processors, cause a machine to:

create a first account and a second account for a first customer, the first account having a first address and at least a first private key corresponding with the first account, the second account having a second address and at least a second private key corresponding with the second account, each of the first account and the second account having a common customer identifier associated with the first customer;

receive an order for exchanging one or more digital transactional items associated with the first account, wherein the order is associated with the common customer identifier;

electronically sign, with the at least the first private key corresponding with the first account, a first transaction to transfer the one or more digital transactional items from the first account to the second account, wherein the one or more digital transactional items are transferred from the first account to the second account once the first transaction is electronically signed by the at least the first private key, wherein the one or more digital transactional items in the second account are committed for use in the order for exchanging the one or more digital transaction items;

electronically sign, with the at least the first private key corresponding with the first account, a second transaction to use the one or more digital transaction items in the order for exchanging the one or more digital transaction items;

verify that both the first transaction and the second transaction were signed with the at least the first private key to verify that the one or more digital transaction items are committed and available for the order exchanging the one or more digital transactional items; and

authorize placement of the order on a cryptographic exchange upon verifying that both the first transaction and the second transaction were signed with the at least the first private key.

29. The non-transitory computer-readable storage medium of claim 28, wherein the one or more digital transaction items include tokenized assets.

30. The non-transitory computer-readable storage medium of claim 28, wherein the one or more digital transactional items are selected from at least one of:

tokens, cash, cash equivalents, crypto currencies, digitized dollars, digital assets, digital liabilities, digital shares of stocks, securities, and digital funds.

31. A non-transitory computer-readable storage medium including a set of instructions that, when executed by one or more processors, cause a machine to:

receive, from a broker-dealer, a request to match a buy transaction with a sell transaction,

wherein the buy transaction includes a buy order to purchase one or more digital transactional items for an amount corresponding to a value of the one or more digital transactional items and the sell transaction includes a sell order to sell the one or more digital transactional items for the amount,

wherein the buy transaction has a first signature of a first private key corresponding with a first account that identifies the buy order, wherein the sell transaction has a second signature of a second private key corresponding with a second account that identifies the sell order, the first account being associated with a first customer and the second account being associated with a second customer,

wherein the amount is associated with a third account associated with the first customer, wherein the amount associated with the third account is committed for use in the buy order, wherein the amount was transmitted from the first account to the third account in a transaction signed by the first private key, and

wherein the one or more digital transactional items are associated with a fourth account associated with the second customer, wherein the one or more digital transactional items associated with the fourth account are committed for use in the sell order;

map the buy transaction to the third account and the sell transaction to a fourth account;

send, to the cryptographic exchange, a match request response including the first signature and the second signature to commit the buy transaction; and

transfer the one or more digital items from the fourth account associated with the second customer to the first account associated with the first customer and transfer the amount from the third account associated with the first customer to the second account associated with the second customer to settle and clear the buy transaction and the sell transaction.

32. The non-transitory computer-readable storage medium of claim 31, wherein the one or more digital transaction items include tokenized assets.

33. The non-transitory computer-readable storage medium of claim 31, wherein the one or more digital transactional items are selected from at least one of:

tokens, cash, cash equivalents, crypto currencies, digitized dollars, digital assets, digital liabilities, digital shares of stocks, securities, and digital funds.