US 2026/0301016 A1 · STATE-FUNDED TOKENIZATION SYSTEM (StFT): A MULTI-CYCLE, GEO-FENCED FRAMEWORK FOR GOVERNMENT-BACKED DIGITAL ASSETS, INCENTIVES, AND EMERGENCY FUNDING

Abstract

A blockchain-based digital token system enables state governments to transform government-issued fiscal incentives into geo-fenced, multi-cycle digital tokens. Each token is minted on a permissioned blockchain, pegged at a one-to-one ratio to a fiat currency, and backed by a state-managed reserve account. Tokens are issued in a non-redeemable state and must complete a configurable number of validated transactions within an authorized geographic boundary before becoming eligible for redemption. A geo-fencing module performs two-point authentication for each transaction by verifying merchant identity against a registry and comparing cryptographically signed location data against permissible geographic regions. A smart contract engine increments a usage counter for each validated transaction and updates the token to a redeemable state upon meeting the threshold. Users interact through a dual-compartment digital wallet displaying non-redeemable and redeemable tokens separately. Upon redemption, tokens are permanently burned to maintain supply alignment with the fiat reserve.

Claims20

Dependent claims

A system for enforcing geographically restricted multi-cycle circulation of government-backed digital incentive instruments, comprising:

a token issuance engine configured to generate jurisdiction-restricted digital tokens each backed by a state-managed fiat reserve and initialized in a non-redeemable state;
a circulation enforcement module configured to gate each token's transition to a redeemable state on completion of a configurable minimum number of cryptographically verified transfer events each occurring within an authorized geographic boundary defined by the issuing jurisdiction;
and
a token lifecycle manager configured to execute an irreversible deactivation operation upon redemption and record the event on a distributed ledger.

1 more element

A computer-implemented method for enforcing geographically restricted multi-cycle circulation of government-backed digital incentive instruments, the method comprising:

generating, by a token issuance engine executing on one or more processors, jurisdiction-restricted digital tokens each backed by a state-managed fiat reserve and initialized in a non-redeemable state;
gating, by a circulation enforcement module, each token's transition to a redeemable state on completion of a configurable minimum number of cryptographically verified transfer events each occurring within an authorized geographic boundary defined by the issuing jurisdiction;
and
executing, by a token lifecycle manager, an irreversible deactivation operation upon redemption and recording the event on a distributed ledger.

1 more element

A non-transitory computer-readable medium storing instructions that, when executed by one or more processors, cause the one or more processors to:

generate jurisdiction-restricted digital tokens each backed by a state-managed fiat reserve and initialized in a non-redeemable state;
gate each token's transition to a redeemable state on completion of a configurable minimum number of cryptographically verified transfer events each occurring within an authorized geographic boundary defined by the issuing jurisdiction;
and
execute an irreversible deactivation operation upon redemption and record the event on a distributed ledger.

1 more element

Dependencies are inferred from the claim text.

STATE-FUNDED TOKENIZATION SYSTEM (StFT): A MULTI-CYCLE, GEO-FENCED FRAMEWORK FOR GOVERNMENT-BACKED DIGITAL ASSETS, INCENTIVES, AND EMERGENCY FUNDING

Life of this patent

STATE-FUNDED TOKENIZATION SYSTEM (StFT): A MULTI-CYCLE, GEO-FENCED FRAMEWORK FOR GOVERNMENT-BACKED DIGITAL ASSETS, INCENTIVES, AND EMERGENCY FUNDING

Life of this patent

Abstract

Claims20