BitcoinHD (BHD), a US Securities and Exchange Commission-approved security token, has submitted an application with Coinbase for a listing on the exchange.
Announced on Monday, it is the first SEC-approved security token to approach the crypto exchange for a listing.
The company highlighted that Coinbase is one of the largest and reputed exchanges and listing on the exchange requires rigorous scrutiny under the terms of its Digital Asset Framework, which ensures reliability of security and code, compliance requirements, team review, scalability, market demand, and governance.
An easy way for seeking SEC’s permission
The Singapore-based blockchain project has received SEC’s approval in late March under the Form D exemption.
Form D allows companies to issue securities by disclosing only essential information. However, these companies can only approach accredited investors for raising funds.
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In the United States, these investors include individuals with a net worth of $1 million or a consistent annual income of $200,000. For enterprises to fall into this category, they need to maintain $5 million in assets.
BHD is developing a platform that uses conditional proof of capacity (CPoC) consensus mechanism for mining its digital currency.
CPoC consensus mechanism uses the available hard drive space for its mining rights, rather than computing power.
According to the company, this results in lower energy consumption, reducing the entry barrier for network members. The algorithm is also ASIC-resistant to ensure a higher level of decentralization.
Meanwhile, many blockchain companies are benefiting from the SEC’s Form D expansion to raise funds without any backlash from the regulator. Last year, Finance Magnates reported that as many as 300 projects were seeking the market regulator’s approval for such exemption.