System and method for creating and managing a synthetic currency
First Claim
1. A synthetic currency transaction network performing transactions with near real time finality of transaction between potential borrowers and potential lenders, said synthetic currency created by pooling and dividing into shares a portfolio of highly liquid assets and by frequent evaluation and disbursements of dividends on those assets so as to hold the value of the synthetic currency share at unity with the underlying currency, said synthetic currency network comprising:
- means for interfacing synthetic currency network users to said synthetic currency transaction network;
database means for storing and maintaining records and other information used by said synthetic currency transaction network;
transaction management means operatively connected to said means for interfacing and said database means for managing network users'"'"' accounts and all network transactions;
fund accounting means operatively connected to said transaction management means for managing network information regarding said synthetic currency;
deposit bank means which acts as custodian for said portfolio of highly liquid assets which underlie said synthetic currency;
investment management means operatively connected to said transaction management means and said deposit bank means for managing the measure of synthetic currency and directing investment decisions; and
loan accountant means operatively connected to said transaction management means for managing all lending and borrowing activities in said synthetic currency transaction network.
1 Assignment
0 Petitions
Accused Products
Abstract
A synthetic currency transaction network which performs transactions with near real time finality of transaction between potential borrowers and potential lenders. Synthetic currency is created by pooling and dividing into shares a portfolio of highly liquid assets and frequent evaluation and disbursements of dividends on those assets so as to hold the value of the synthetic currency share at unity with the underlying currency. The synthetic currency network provides for interfacing users to the synthetic currency transaction network. A database is used for storing and maintaining records and other information of the network. A transaction manager manages network users'"'"' accounts and all network transactions. A fund accountant manages network information regarding the synthetic currency. A deposit bank acts as custodian for the portfolio of highly liquid assets which underlie the synthetic currency. An investment manager manages the measure of synthetic currency and directs investment decisions. A loan accountant manages all lending and borrowing activities in the synthetic currency transaction network.
147 Citations
48 Claims
-
1. A synthetic currency transaction network performing transactions with near real time finality of transaction between potential borrowers and potential lenders, said synthetic currency created by pooling and dividing into shares a portfolio of highly liquid assets and by frequent evaluation and disbursements of dividends on those assets so as to hold the value of the synthetic currency share at unity with the underlying currency, said synthetic currency network comprising:
-
means for interfacing synthetic currency network users to said synthetic currency transaction network;
database means for storing and maintaining records and other information used by said synthetic currency transaction network;
transaction management means operatively connected to said means for interfacing and said database means for managing network users'"'"' accounts and all network transactions;
fund accounting means operatively connected to said transaction management means for managing network information regarding said synthetic currency;
deposit bank means which acts as custodian for said portfolio of highly liquid assets which underlie said synthetic currency;
investment management means operatively connected to said transaction management means and said deposit bank means for managing the measure of synthetic currency and directing investment decisions; and
loan accountant means operatively connected to said transaction management means for managing all lending and borrowing activities in said synthetic currency transaction network. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16)
-
-
17. A virtual synthetic currency transaction agent where authenticated and encrypted synthetic currency shares are encoded onto an electronic currency medium, said agent comprising:
-
means for interfacing said synthetic currency transaction agent to other synthetic currency transaction agents;
means for storing and maintaining information regarding past transactions and ownership of said synthetic currency transaction agent;
means for tracking information regarding the interest on said synthetic currency, said information including the current owner of the interest and its value;
means for tracking dividends regarding said synthetic currency; and
means for tracking the points charged for the lending of said synthetic currency.
-
-
18. A method of performing a virtual synthetic currency transaction, said method comprising:
-
transferring currency to a deposit bank;
acquiring a portfolio of highly liquid assets by said deposit bank;
creating synthetic currency by dividing said assets into synthetic currency shares;
executing transactions necessary to maintain said portfolio sufficiently liquid while maintaining a high rate of return;
authenticating and encrypting said synthetic currency shares;
encoding said authenticated and encrypted synthetic currency shares onto an electronic currency medium;
transferring said synthetic currency by transferring said synthetic currency shares from one said electronic currency medium to one or more other said electronic currency medium; and
updating each said electronic currency medium to reflect said transfer. - View Dependent Claims (19, 20)
-
-
21. A method of performing synthetic currency transactions with near real-time finality of settlement between users, said method comprising:
-
transferring currency from a network wire to a user'"'"'s account;
acquiring a portfolio of highly liquid assets, said assets used to create a pool of assets;
creating synthetic currency;
processing a user'"'"'s request for one or more said synthetic currency transactions;
updating said user'"'"'s account to reflect the net result of said processing of said user'"'"'s request;
calculating and executing transactions necessary to maintain said synthetic currency share cost at unity; and
calculating and executing transactions necessary to maintain said portfolio sufficiently liquid while maintaining a high rate of return. - View Dependent Claims (22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48)
transferring said currency received from said network wire to a cash account;
verifying sufficient said synthetic currency shares are available in said pool of assets and performing one of the following;
transferring said currency into said synthetic currency shares if sufficient said synthetic currency shares are available, or increasing the size of the pool by acquiring new assets if insufficient said synthetic currency shares are available;
calculating the new size and dividend on said pool of assets and the new rate of return; and
transferring said synthetic currency shares to said user'"'"'s synthetic currency account.
-
-
37. The method of claim 21 wherein said step of processing said user'"'"'s requests comprises divesting from said synthetic currency.
-
38. The method of claim 37 wherein said user'"'"'s request to divest from said synthetic currency comprises:
-
receiving payment request instruction from said user;
verifying said users'"'"'synthetic currency account has sufficient said synthetic currency shares and performing one of the following;
holding said payment request in pending queue until receipt of sufficient said shares, if insufficient said shares are available, or clearing transaction for finality and debiting said users'"'"' synthetic currency account accordingly, if sufficient said shares are available;
returning said shares to said pool if said pool is below its high margin;
liquidating appropriate of said assets from said pool if said pool is above its said high margin;
confirming sale of said assets and crediting cash account accordingly;
calculating new size and dividend on said pool; and
transferring, electronically, cash to user'"'"'s designated external account.
-
-
39. The method of claim 21 wherein said step of processing said user'"'"'s requests comprises transferring said synthetic currency.
-
40. The method of claim 21 wherein said step of processing said user'"'"'s requests comprises exchanging said synthetic currency.
-
41. The method of claim 21 wherein said step of processing said user'"'"'s requests comprises checking and approving said synthetic currency transaction.
-
42. The method of claim 41 wherein said checking comprises checking one or more of:
-
the synthetic currency shares in the pool;
lines of credit;
whether share is loanable; and
whether transaction is contingent on another transaction.
-
-
43. The method of claim 21 wherein said first step of calculating and executing comprises maintaining a margin pool of shares necessary to absorb the internal dynamics of performing said synthetic currency transactions to save said user money by converting said transactions from a gross settlement system to a periodic net settlement system.
-
44. The method of claim 43 wherein said pool is collateralized by users designating a certain percentage of shares to cover outstanding transactions.
-
45. The method of claim 21 wherein said users comprise potential borrowers and potential lenders of synthetic currency.
-
46. The method of claim 21 wherein said method continuously pays the holder of said synthetic currency a competitive interest rate.
-
47. The method of claim 21 wherein said method reduces transaction delays by bypassing multiple banking systems.
-
48. The method of claim 21 wherein said method continuously pays said interest throughout the entire transaction.
Specification