System and method for issuing circulation trading financial instruments with smart features

• US 10,445,727 B1
• Filed: 04/24/2013
• Issued: 10/15/2019
• Est. Priority Date: 10/18/2007
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Silverman, Robert Michael
• Primary Examiner(s): Obeid, Mamon
• Application Number:
  US13/869,308
• Time in Patent Office: 2,365 Days
• Field of Search: None
• CPC Class Codes: G06Q 20/223 based on the use of peer-to-peer networks
• CPC Class Codes: G06Q 20/36 using electronic wallets or electronic money safes
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for issuing, circulating and trading financial instruments with smart features is disclosed. In one particular exemplary embodiment, a financial instrument having smart features may comprise a document portion and a token device attached to or embedded in the document portion. The token device may comprise a storage device and a communication interface, wherein the token device is configured to provide a unique address for the financial instrument, the unique address including a device identifier that matches at least in part the document portion and a network address that changes based on a network location of the financial instrument and to communicate securely with an external entity at least to report an identity or a status of the financial instrument.

Claims

1. A first digital wallet device comprising a token device for conducting a peer-to-peer transaction with a second digital wallet device, the token device comprising:

a memory storing programmed instructions, a virtual financial instrument, ownership information of the virtual financial instrument, and a network address of the token device, the network address having a fixed portion and a variable portion;

a communication interface configured to communicate with a communication interface of the second wallet device via a peer-to-peer communication network; and

at least one processor coupled to the memory and configured to execute the stored programmed instructions to;

broadcast an offer signal for a virtual financial instrument stored in the token device, the offer signal including at least a portion of the stored network address;

authenticate the second digital wallet device, in response to receiving an acceptance communication from the second digital wallet device;

filter the network address of the token device to determine an intent of trading status and transferability of the virtual financial instrument; and

based on the determined intent of trading status and transferability of the virtual financial instrument;

transfer the virtual financial instrument over the peer-to-peer communication network to a receiving network address associated with the second digital wallet device without involving a remote entity device;

create a data record of transferring the virtual financial instrument from the network address of the token device to the receiving network address associated with the second digital wallet device;

update the memory of the token device to modify the ownership information of the virtual financial instrument; and

communicate, after the transfer of the virtual financial instrument, the created data record to the remote entity device.

2. The first digital wallet device of claim 1, wherein the virtual financial instrument represents one or more traditional instruments comprising currency, stock certificates, bonds, treasury bills, banknotes, checks, promissory notes, commercial papers, bills of lading, letters of credit, derivative contracts, payment cards, lottery tickets, raffle tickets, receipts, gaming chips, or admission tickets.

3. The first digital wallet device of claim 1, wherein one or more of the receiving network address of the second digital wallet device or the network address of the first digital wallet device is based on a network Internet protocol (IP) address.

4. The first digital wallet device of claim 1, wherein the first digital wallet device is a mobile device.

5. The first digital wallet device of claim 1, wherein a wallet service of the first digital wallet device is facilitated via a web service.

6. The first digital wallet device of claim 1, wherein the receiving network address of the second digital wallet device is received, before the transfer the virtual financial instrument, from the remote entity device.

7. A method for transferring virtual financial instruments over peer-to-peer communication networks, the method implemented by a first digital wallet device comprising a token device for conducting a peer-to-peer transaction with a second digital wallet device, the method comprising:

storing, in a memory of the token device, a virtual financial instrument, ownership information of the virtual financial instrument, and a network address of the token device, the network address having a fixed portion and a variable portion;

broadcasting, via a communication interface of the token device, an offer signal for a virtual financial instrument stored in the token device, the offer signal including at least a portion of the stored network address;

authenticating the second digital wallet device, in response to receiving an acceptance communication from the second digital wallet device;

filtering the network address of the token device to determine an intent of trading status and transferability of the virtual financial instrument; and

based on the determined intent of trading status and transferability of the virtual financial instrument;

transferring the virtual financial instrument over the peer-to-peer communication network to a receiving network address associated with the second digital wallet device without involving a remote entity device;

creating a data record of transferring the virtual financial instrument from the network address of the token device to the receiving network address associated with the second digital wallet device;

updating the memory of the token device to modify the ownership information of the virtual financial instrument; and

communicating, after the transferring of the virtual financial instrument, the created data record to the remote entity device.

8. The method of claim 7, wherein the virtual financial instrument represents one or more traditional instruments comprising currency, stock certificates, bonds, treasury bills, banknotes, checks, promissory notes, commercial papers, bills of lading, letters of credit, derivative contracts, payment cards, lottery tickets, raffle tickets, receipts, gaming chips, or admission tickets.

9. The method of claim 7, wherein one or more of the receiving network address of the second digital wallet device or the network address of the first digital wallet device is based on a network Internet protocol (IP) address.

10. The method of claim 7, wherein the first digital wallet device is a mobile device.

11. The method of claim 7, wherein a wallet service of the first digital wallet device is facilitated via a web service.

12. The method of claim 7, wherein the receiving network address of the second digital wallet device is received, before the transferring of the virtual financial instrument, from the remote entity device.

13. A non-transitory computer readable medium having stored thereon instructions for transferring virtual financial instruments over peer-to-peer communication networks comprising executable code which when executed by at least one processor of a token device included in a first wallet device, causes the processor to:

store, in a memory, a virtual financial instrument, ownership information of the virtual financial instrument, and a network address of the token device, the network address having a fixed portion and a variable portion;

broadcast an offer signal for a virtual financial instrument stored in the token device of the first digital wallet device, the offer signal including at least a portion of the stored network address;

authenticate second digital wallet device, in response to receiving an acceptance communication from the second digital wallet device;

filter the network address of the token device to determine an intent of trading status and transferability of the virtual financial instrument; and

based on the determined intent of trading status and transferability of the virtual financial instrument;

transfer the virtual financial instrument over the peer-to-peer communication network to a receiving network address associated with the second digital wallet device without involving a remote entity device;

create a data record of transferring the virtual financial instrument from the network address of the token device to the receiving network address associated with the second digital wallet device;

update the memory of the token device to modify the ownership information of the virtual financial instrument; and

communicate, after the transfer of the virtual financial instrument, the created data record to the remote entity device over the peer to peer communications network.

14. The non-transitory computer readable medium of claim 13, wherein the virtual financial instrument represents one or more traditional instruments comprising currency, stock certificates, bonds, treasury bills, banknotes, checks, promissory notes, commercial papers, bills of lading, letters of credit, derivative contracts, payment cards, lottery tickets, raffle tickets, receipts, gaming chips, or admission tickets.

15. The non-transitory computer readable medium of claim 13, wherein one or more of the receiving network address of the second digital wallet device or the network address of the first digital wallet device is based on a network Internet protocol (IP) address.

16. The non-transitory computer readable medium of claim 13, wherein the first digital wallet device is a mobile device.

17. The non-transitory computer readable medium of claim 13, wherein a wallet service of the first digital wallet device is facilitated via a web service.

18. The non-transitory computer readable medium of claim 13, wherein the receiving network address of the second digital wallet device is received, before the transfer of the virtual financial instrument, from the remote entity device.