Popularly called the ‘Blockchain Island’, Malta has attracted some of the biggest blockchain and cryptocurrency businesses including Binance Cryptocurrency Exchange and blockchain startup, Neufund. The country is further pushing its blockchain boundaries—if there are any—through the fintech arm of its Stock Exchange, MSX.
MSX, responsible for innovation in Malta Stock Exchange (MSE), has entered key strategic partnerships with Neufund and Binance in a bid to create the first ‘decentralized’ Stock Exchange Markets.
The deal with Neufund is expected to create a trading platform for tokenized securities. For its part, Neufund operates a platform for securities tokenization and issuance. According to its press release, “Neufund will become the first end-to-end primary issuance platform for security tokens, in particular, equity tokens.” Furthermore, “it will secure ways for secondary trading of equity tokens and enable companies around the world to fundraise on Blockchain in a legal way while offering much-needed liquidity.”
Binance, on the other hand, will create the suitable exchange for the tokens. The platform will accommodate both security tokens and equity tokens.
The release indicated that a pilot project was expected to start soon. At least seven Maltese companies are interested in issuing tokenized equity, or Equity Token Offering (ETO) through Neufund; they include Founders Bank, Blockstate, Uniti, MySwooop, Next Big Thing, Brille24, and Emflux Motors.
Malta’s efforts to promote Blockchain and Cryptocurrency
According to reports from CCN, Malta’s Parliamentary Secretary for Digital Innovation and Finance, Silvio Schmebri, noted that the agreements reinforced Malta’s position as key players in the blockchain and cryptocurrency space. According to him, the ventures will grow and allow more operators to key into the country’s blockchain agenda.
OKEX, also a major cryptocurrency operator that went to Malta, previously signed an agreement with MSX to establish a trading platform for security tokens focused on Institutional Investors. The exchange, OKMSX, follows the trend of a growing interest in cryptocurrencies by institutional investors and will be operational in early 2019.
In May, the country passed three landmark legislations that favor cryptocurrency blockchain technology, and Distributed Ledger Technology (DLT). Building on this first-of-a-kind framework, the country will host Delta Summit from the 3rd to 5th of October 2018 to promote blockchain and cryptocurrency and attract blockchain businesses and ICOs.
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.