Patent 5
Compliance-Aware KYB & AML Smart Invoice Tokenization Patent
This patent introduces a compliance-aware smart invoice tokenization engine that converts traditional invoices into blockchain-based digital assets enriched with AI-derived financial risk scores and integrated KYB/AML verification.
Patent Number
05
Provisional Patent No
TEMP/E-1/88391/2025-KOL
Application Number
202531079191
Patent Remarks
Compliance-aware Know-Your-Business (KYB) and Anti-Money Laundering (AML) verification framework for blockchain transactions.
Field of Invention
This invention introduces a novel Compliance-Aware Smart Invoice Tokenization Engine that is absent in existing solutions, combining blockchain technology with specialized workflows including invoice tokenization, AI-powered financial risk scoring, compliance-aware KYB/AML validation, and modular escrow mechanisms. It enables secure, transparent, and automated invoice settlement while embedding jurisdiction- specific regulatory checks directly into smart contracts.
Blockchain-based invoice tokenization
The invention provides a system that converts traditional invoices into blockchain-based tokenized assets, such as non-fungible tokens (NFTs), enriched with compliance data and AI-derived risk assessment scores.
Efficiency in invoice finance & settlement
It addresses inefficiencies in invoice financing, settlement, and trading by integrating decentralized ledger technology, AI-powered validation, middleware-driven ERP integration, and programmable escrow workflows.
ERP Connectors & smart contract minting
In operation, invoices are ingested via ERP connectors into a middleware broker, validated, transformed, and routed to a smart contract engine that mints a risk-scored NFT with metadata including invoice status, payment history, KYB verification, and financial risk scores.
Real-time AI-driven monitoring and updates
The system uses hybrid on-chain/off-chain call backs for real-time updates from AI oracles, improving monitoring and decision-making for liquidity providers, buyers, and traders.
Milestone-based escrow mechanism
A milestone-based escrow mechanism locks and releases funds based on predefined conditions such as payment confirmation, delivery verification, or project completion, reducing default risks.
Automated liquidity & DeFi integration
Automated liquidity governance enables tokenized invoices to be traded or pooled in DeFi marketplaces, with on-chain ROI pay outs handled by smart contracts for transparency and auditability.
DAO-powered governance framework
The invention supports a DAO-powered marketplace for community-driven governance, policy changes, and dispute resolution without central intermediaries.
Key benefits & compliance assurance
Key benefits include faster settlement, embedded compliance data in invoice tokens, improved security through escrow-backed transactions, optimized liquidity via fractional trading, and regulatory compliance through integrated AI-powered KYB/AML checks.