Malta is consolidating its position as one of the biggest hubs of cryptocurrency and ICO activity in the world. Showing that the movement of Binance to the tiny island was no fluke, it has just announced that two new token exchanges will open in the next twelve months.
Binance’s “Next Chapter”
The first is a collaboration between MSX, the fintech wing of the Malta Stock Exchange, crypto investment platform Neufund, and Binance. Together they aim to “create a regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets.”
The exchange will be primarily focused on enabling companies to raise funds simply and legally through Equity Token Offerings (ETOs). According to Neufund, seven companies are already signed up, including Founders Bank, Uniti and Blockstate.
There will also be a pilot scheme whereby an equity token issued by Neufund will become tradeable on Binance, provided all the regulators agree. Binance CEO Chanpeng Zhao described this as “a new chapter for Binance’s development,” with an ambitious goal to “tokenize traditional financial assets.”
According to Zoe Adamovicz, Neufund’s CEO and co-founder, this is the “first time in history, that security tokens can be offered and traded in a legally binding way.”
The other new exchange is OKMSX, a partnership between MSX and OKEx, and scheduled to launch in the first quarter of next year.
Together they hope to create an “institutional grade security-tokens trading platform” through the marriage of OKEx’s “digital asset operations and security expertise” with the Malta Stock Exchange’s experience of running a regulated and compliant operation.
Tim Byun, Okex’s Chief Risk Officer and Head of Government Relations, said that the joint project was evidence of “our confidence in the Maltese government” and that he believed that the new exchange “will be a milestone in the economic development of Malta.”