System and Method for Equitably Allocating a Financial Distribution to Multiple Investors Using a Payment System

A computer-implemented system for creating equitable payment instructions for equitably distributing income from an income-producing security to an investor, the system comprising:

• a processing system comprising at least one processor and a memory storing executable instructions operably connected to the processor, the processing system configured to control the system, the processing system further configured to receive an income distribution from a security issuer of an income-producing security, the processing system further configured to transfer the income distribution to a custodian;
• a network interface operably connected to the processing system;
• an application programming interface (API) configured to communicate with transaction sources, security issuers, a blockchain interface module, and custodians via the network interface;
• a transaction retrieval module controlled by the processing system and configured to retrieve transaction data describing a transaction from a transaction source via the API, the transaction module further configured to retrieve an investor share number, the investor share number comprising a number of shares held by the investor at a start of a payment period;
• a share-interval module configured to divide the payment period into a sequence of share-intervals, wherein the first interval starts immediately after the previous payment period ends, and each subsequent interval corresponds to a share-interval duration defined by the security issuer, the share-interval module further configured to assign the transaction to a corresponding share-interval using the transaction data, the share-interval module further configured to calculate, using the transaction data, for the investor and for the share-interval, a current share-interval value by subtracting a total number of shares sold from an investor purchase number, where the investor purchase number comprises a total number of shares that the investor purchased during the share-interval, the share-interval module further configured to compute an ending share-interval value adding the current share-interval value to an ending share-interval value of a previous share-interval, wherein, for a first share-interval of a payment period, the share-interval module sets the ending share-interval value of the previous share-interval to the investor share number, the share-interval module further configured to delete the ending share-interval value of the previous share-interval after computing the ending share-interval value of the current share-interval, the share-interval module further configured to identify, at the end of the payment period, for the investor, the ending share-interval value of the last share-interval of the payment period as the investor's total ending share-interval value for the payment period, the share-interval module further configured to calculate a cumulative ending share-interval value for the investors by summing the total ending share-interval values for each investor, wherein the payment instructions module is further configured to compute, a payable income to the investor by dividing the investor's total ending share-interval value by the cumulative ending share-interval value for the investors and multiplying the result by the income distribution for the payment period, the payment instructions module further configured to generate equitable payment instructions for the investor based on the calculated income payable, the payment instructions module further configured to store, in the memory, the equitable payment instructions, the payment instructions module further configured to transmit the equitable payment instructions to the custodian for equitable distribution to the investor of the payable income.