Cryptographic Currency For Securities Settlement

• US 20150332395A1
• Filed: 10/30/2014
• Published: 11/19/2015
• Est. Priority Date: 05/16/2014
• Status: Active Grant

• Current Assignee: Goldman Sachs & Co. LLC (Goldman Sachs Group Incorporated)
• Original Assignee: Goldman Sachs & Company (Goldman Sachs Group Incorporated)
• Inventors: Walker, Paul, Venables, Phil J.
• Granted Patent: US 9,704,143 B2
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/065 using e-cash
• CPC Class Codes: G06Q 20/36 using electronic wallets or electronic money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 63/126 the source of the received data
• CPC Class Codes: H04L 9/30 Public key, i.e. encryption algorithm being computationally infeasible to invert or user's encryption keys not requiring secrecy
• CPC Class Codes: H04L 9/3236 using cryptographic hash functions
• CPC Class Codes: H04L 9/3247 involving digital signatures
• CPC Class Codes: H04L 9/50 using hash chains, e.g. blockchains or hash trees

Abstract

The present disclosure is directed to security settlement in financial markets and cryptographic currencies. Particular portions of the present disclosure are directed to a cryptographic currency protocol and to a cryptographic currency that includes a positional item. The cryptographic currency protocol supports a virtual wallet that, in various embodiments, is a security and cash account for storing and managing the cryptographic currency. Opening a transaction via the virtual wallet to transfer the cryptographic currency is a strong guarantee of the availability of funds in the virtual wallet because, e.g., funds are not transacted unless the commit phase is successful.

Claims

1. A computer-readable storage device having contents adapted to cause a programmed computer system comprising a processor, a data storage system, at least one input device, and at least one output system, to perform operations, the operations comprising:

producing a cryptographic currency, wherein the cryptographic currency is produced by an issuer of the cryptographic currency, and wherein the cryptographic currency includes a positional item;

generating one or more electronic transaction messages for exchanging the cryptocurrency, wherein the one or more electronic transaction messages at least includes a transaction and a digital signature of the transaction, wherein the transaction at least includes;

a recipient electronic address for receiving the cryptographic currency; and

the cryptographic currency; and

executing a market trade of the cryptographic currency, wherein the market trade of the cryptographic currency is based on sending, via computing codes of a peer-to-peer network, the one or more electronic transaction messages for delivery to the recipient address, wherein ownership of the market trade are verified based on one or more network ledgers within a one or more nodes of the peer-to-peer network.

2. The computer-readable storage device of claim 1 further comprising receiving a financial security in exchange for the cryptographic currency as part of the market trade.

3. The computer-readable storage device of claim 1 wherein the market trade is at least a trade of the cryptographic currency for a non-cryptographic currency.

4. The computer-readable storage device of claim 1 wherein the cryptographic currency is for trading financial securities.

5. The computer-readable storage device of claim 1 wherein the market trade is executed using a virtual wallet.

6. The computer-readable storage device of claim 1 wherein

the market trade is executed based on a commitment protocol.

7. The computer-readable storage device of claim 6 wherein

the commitment protocol is a two phase commitment protocol.

8. The computer-readable storage device of claim 1 wherein

the positionable item is at least a security item and a position, wherein the position is representative of a quantity of the positionable item.

9. The computer-readable storage device of claim 1 wherein the

verification is a verification of proper chain-of-title of the cryptographic currency.

10. The computer-readable storage device of claim 1 wherein the market trade is based on public key cryptography.

11. A computer-implemented method, comprising:

determining a cryptographic currency, wherein the cryptographic currency includes a positional item;

storing the cryptographic currency in a virtual wallet, wherein the virtual wallet is configured to store one or more types of cryptographic currencies; and

exchanging, via a network, the cryptographic currency that includes the positional item for one or more other cryptographic currencies.

12. The computer-implemented method of claim 11 wherein the one or more other cryptographic currencies are of a same type of cryptographic currency as the determined cryptographic currency.

13. The computer-implemented method of claim 11 wherein the one or more other cryptographic currencies are of a different type of cryptographic currency as the determined crypto currency.

14. The computer-implemented method of claim 11 wherein one or more electronic transaction message are used for exchanging the cryptographic currency.

15. The computer-implemented method of claim 11 wherein one or more of the transaction messages include a digital signature, address and the positionable item.

16. The computer-implemented method of claim 11 wherein ownership of the asset and ownership of the one or more positionable items are based on at least one entry associated with one or more digital ledgers.

17. A peer-to-peer cryptographic currency trading method, comprising:

Initiating, via a computer, a market exchange of one or more positionable items in a virtual wallet for purchasing an asset at a purchase price;

determining, via a computer implemented two-phase commit protocol, whether the virtual wallet has a sufficient quantity of the one or more positionable items to purchase the asset at the purchase price;

verifying, via the two-phase commit protocol, that the virtual wallet has a sufficient quantity of one or more positionable items for purchasing the asset at the purchase price; and

purchasing the asset with at least one of the one or more positionable items.

18. The peer-to-peer cryptographic currency trading method of claim 17 wherein in response to determining that the virtual wallet has insufficient positionable items to purchase the asset, automatically terminating the market exchange for purchasing the asset.

19. A peer-to-peer cryptographic currency trading virtual wallet, comprising:

a cryptographic currency, wherein the cryptographic currency includes a positional item;

an order engine for executing a market trade, via a peer-to-peer network, of the cryptographic currency; and

cryptographic keys, wherein the cryptographic keys are for at least determining transaction messages for exchanging the cryptographic currency as part of the market trade.