Patent Application for Ledger Reconciliation on Distributed Ledger Network

ChangeBridge: Patent Apps - Business Methods (G06Q)

Detected March 26th, 2026

Summary

The USPTO has published a patent application (US20260087491A1) detailing procedures for hierarchical deterministic reconciliation on a distributed ledger network. The application, filed on September 20, 2024, describes a method for verifying and processing transactions using master addresses and cryptographic algorithms, with completed procedures stored on a distributed ledger.

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What changed

This document is a published patent application (US20260087491A1) from the USPTO, detailing a novel procedure for reconciling transactions on a distributed ledger network. The invention focuses on a hierarchical deterministic reconciliation process where a procedure responder verifies a pre-shared master address from an originator, derives destination addresses using record identifiers and cryptographic algorithms, and stores completed procedure information on a distributed ledger. The application was filed on September 20, 2024, and is expected to be published on March 26, 2026.

While this is a patent application and not a regulation, it signals potential future technological developments in financial transaction processing and data integrity. Compliance officers in financial services, technology, and data management sectors should be aware of such innovations as they may influence future compliance requirements or best practices related to distributed ledger technology, data security, and transaction verification. No immediate compliance actions are required, but monitoring patent filings in this area can provide insight into emerging industry standards and potential regulatory shifts.

Source document (simplified)

← USPTO Patent Applications

HIERARCHICAL DETERMINISTIC RECONCILIATION OF PROCEDURES ON DISTRIBUTED LEDGER NETWORK

Application US20260087491A1 Kind: A1 Mar 26, 2026

Inventors

Stefan ARNOLD, Brit PANZER, Bernhard SCHWEIZER

Abstract

A procedure and address data store contains electronic records, and each master data record contains a pre-shared master address for a procedure originator. A procedure responder verifies a pre-shared master address associated with an originator. The master address is the root node of the destination addresses in a hierarchical tree of destination addresses. Each child address is derived from a parent address using a record identifier (e.g., an invoice or payment reference) and a cryptographic key derivation algorithm. The responder receives, from the originator, a procedure record including a record identifier associated with a procedure. The responder then predicts the destination address based on the pre-shared master address associated with the originator, the record identifier, and the algorithm. It is then arranged for the responder to complete the procedure with the originator via the predicted destination address, and information about the completed procedure is stored in a distributed ledger.