The CryptoFed DAO from Wyoming, USA has reportedly completed the submission of two forms with the US SEC, to introduce two variants of inter-dependent stablecoins – dubbed Locke and Ducat.
Specifically revealed via CryptoFed’s Form 10 submission, the tokens are reportedly in the process of finalizing their registration as utility tokens, to be operable across the in-house CryptoFed blockchain.
Nonetheless, SEC’s Form 10 is dedicated to registering securities for potential trading on U.S. exchanges, meaning it is not applicable for “utility listings”.
The form submission that goes by the name CryptoFed will be acknowledged automatically as a DAO in America when the 60-day period from the first filing date is over, despite any outstanding SEC remarks.
CryptoFed’s filing reportedly indicates that Ducat can function simultaneously as an inflation- and deflation-protected stablecoin, which is usable for day-to-day transactions and as a store of value.
Locke will operate as a governance token, utilized for offering stability to Ducat and coming up with rules for the ecosystem.
Per Head of CryptoFed, Marian Orr, the distribution of Locke tokens will be carried out towards municipalities, merchants, banks, crypto exchanges and other participants in the DAO.
“The CryptoFed uses the part and parcel of buying and selling between Locke and Ducat to stabilize Ducat through ongoing open market operations similar to those of the Fed.”
CryptoFed is additionally submitting the filing for Form S-1, to complete the registration of Locke and Ducat tokens, deeming them tradeable and transferable.