DAM obtains patent for “Debit Service Provision System Using Digital Assets”

Digital Asset Markets has obtained a patent (#7574987) for a debit service provision system that allows users to hold digital assets and select a variety of assets for liquidation, enabling instant settlement.

The present invention discloses a debit service provision system using digital assets that addresses the limitations of conventional debit systems by enabling the use of diverse digital assets for settlement, offering advantages such as instant settlement, the ability to choose from various settlement assets, and the option to prioritize preferred assets for liquidation.

The system utilizes blockchain technology and smart contracts to manage transactions and ensure secure and efficient processing. This system allows users to choose between traditional cash held in bank accounts and digital assets held in cryptocurrency exchange accounts as the primary settlement method. It also provides the option to specify a preferred digital asset for settlement and the ratio of cash and digital assets to be used for settlement.

Furthermore, the system offers efficient transaction management, including real-time provisional calculations of asset values and prioritized liquidation of assets based on predefined conditions such as high-value transactions or specific asset types.

Background

Conventional debit card systems primarily rely on cash held in bank accounts as the settlement method. These systems have limitations in terms of the types of assets that can be used for settlement and the flexibility offered to users in managing their assets. The emergence of digital assets such as cryptocurrencies and stablecoins has created opportunities for innovative payment solutions. However, existing debit systems lack the capability to utilize digital assets for settlement.

Key components

1. Settlement Target Priority Asset Selection and Designation Acceptance Means: This component allows debit card users to select and designate their preferred asset for settlement. Users can choose between cash held in their bank accounts and digital assets held in their cryptocurrency exchange accounts.
2. Price Cashing Instruction Means: When the user selects digital assets as the preferred settlement asset, this component instructs the system to convert the required amount of digital assets into cash for settlement.
3. Cash Conversion Means: This component converts the designated digital assets into cash at the current market price. The converted cash is then used for settlement.
4. Cash Transfer Means: This component transfers the converted cash to the merchant’s account, completing the debit transaction.
5. Cash Conversion Necessity Designation Acceptance Means: This component allows merchants to specify whether or not they require the digital assets to be converted into cash. If the merchant does not require cash conversion, the digital assets can be directly transferred to their account.
6. Cash Conversion Control Means: This component controls the cash conversion process based on the merchant’s specification. If the merchant does not require cash conversion, this component instructs the system to bypass the cash conversion process and directly transfer the digital assets.
7. Transaction Record Reference Means: This component allows users to view the transaction records, including the amount of digital assets converted, the exchange rate used, and the current balance of their digital assets.
8. Cash/Digital Asset Settlement Ratio Setting Acceptance Means: This component allows users to specify the ratio of cash and digital assets to be used for settlement.

Additional features

• Prioritization of Digital Asset Types: Users can prioritize the order in which different types of digital assets are used for settlement.
• High-Value Transaction Handling: For high-value transactions, the system prioritizes the use of digital assets over cash to minimize transaction fees.
• Support for Various Digital Assets: The system supports various digital assets such as gold coins, stablecoins, and CO2 emission credits.
• Multiple Payment Options: The system allows users to prioritize different payment methods such as points, digital currencies, stablecoins, and commodity stables.

Differentiation

The present invention offers several advantages over conventional debit systems:

• Instant Settlement: Users can make instant payments using their digital assets.
• Diverse Settlement Assets: Users can choose from a variety of digital assets for settlement.
• Flexibility in Asset Management: Users can prioritize their preferred assets for liquidation and specify the ratio of cash and digital assets to be used for settlement.
• Efficient Transaction Management: The system offers efficient transaction management, including real-time provisional calculations of asset values and prioritized liquidation of assets.
• Cost Savings: For high-value transactions, using digital assets can minimize transaction fees.
• International Payments: The system facilitates international payments by supporting various digital assets and currencies.

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