| CPC G06Q 20/3829 (2013.01) | 28 Claims |
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1. A method of issuing electronic payments using an amount of fiat-backed digital asset comprising the steps of:
(a) providing a digital asset security token database stored on a first set of one or more computer readable media associated with a digital asset security token issuer system associated with a digital asset security token issuer, wherein the digital asset security token database utilizes at least one smart contract code associated with a contract address of the digital asset security token database and comprises a log of digital asset security tokens including:
(i) a first set of digital asset addresses including a respective digital asset address for each respective digital asset security token holder; and
(ii) a respective digital asset security token amount associated with each respective digital asset address, wherein each respective digital asset address of the first set of digital asset addresses is tied to a distributed transaction ledger maintained by a plurality of geographically distributed computer systems in a peer-to-peer network;
(b) providing a fiat-backed digital asset database stored on the distributed transaction ledger maintained by the plurality of geographically distributed computer systems in the peer-to-peer network, wherein the fiat-backed digital asset database comprises a log of fiat-backed digital assets including:
(i) a second set of digital asset addresses including a second respective digital asset address for each respective fiat-backed digital asset holder; and
(ii) a respective fiat-backed digital asset amount for each respective fiat-backed digital asset holder, wherein the fiat-backed digital assets are issued by a fiat-backed digital asset issuer;
(c) obtaining, via the contract address, by a trusted entity system associated with a trusted entity, and using a first application program interface, a first sum of fiat-backed digital assets, wherein the first sum of fiat backed digital assets are backed by a plurality of assets comprising at least a second amount of a first fiat maintained by a custodian;
(d) accessing, by the trusted entity system, using the first application program interface, the digital asset security token database to determine:
(i) each respective digital asset address of the first set of digital asset addresses for each respective digital asset security token holder; and
(ii) the respective digital asset security token amount associated with each respective digital asset address;
(e) determining a respective payment amount in fiat-backed digital assets to be made to each respective digital asset address of the first set of digital asset addresses based at least in part on a fixed notional amount, the first sum of fiat-backed digital assets and, the respective digital asset security token amount associated with each respective digital asset address of the first set of digital asset addresses, the fixed notional amount being based at least in part on a notional pegged rate including a fixed proportional value associated with the fiat-backed digital asset and the first fiat;
(f) generating, by the trusted entity system operably connected as a node of a decentralized digital asset network including a peer-to-peer network, transaction instructions including computer code configured to cause the trusted entity system to initiate a transfer of the respective payment amount of fiat-backed digital assets to each respective digital asset address of the first set of digital asset addresses from the digital asset security token issuer account to the security token holder accounts, wherein generating the transaction instructions includes generating code configured to be utilized by other nodes of the decentralized digital asset network to facilitate the transfer of the fiat-backed digital assets;
(g) publishing, by the trusted entity system to the peer-to-peer network, the transaction instructions, the publishing causing the respective payment amount of fiat-backed digital assets to be credited to each respective digital asset address of the first set of digital asset addresses where ownership of each digital asset security token remains the same;
(h) publishing, by the trusted entity system to a side ledger, the transaction instructions associated with crediting the respective payment amount of fiat-backed digital assets to each respective digital asset address of the first set of digital asset addresses and the publishing step (q) including publishing the transaction instructions from the side ledger to the distributed asset ledger periodically or aperiodically, wherein the digital asset security token database is maintained on a sidechain, separate from the peer-to-peer network, wherein information on the sidechain is published and stored on the peer-to-peer network periodically or aperiodically;
(i) confirming, by the trusted entity system, receipt of the respective amount of fiat-backed digital assets and continued ownership of each respective digital asset security token at each digital asset address of the first set of the digital asset addresses and updating the distributed transaction ledger automatically as maintained on the other nodes of the decentralized digital asset network; and
(j) notifying, by the trusted entity system, each digital asset address of the first set of the digital asset addresses of each respective transfer of fiat-backed digital assets to each respective digital asset address of the first set of digital asset addresses.
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