Malta Stock Exchange and Binance to launch a security token trading platform
Binance and Malta Stock Exchange's MSX PLC have entered a Memorandum f Understanding to launch a platform for trading digital security tokens. The agreement was signed yesterday between MSE chairman Joseph Portelli and Binance chief financial officer Wei Zhou.
The new partnership will allow the platform to host traditional financial assets on the blockchain through security tokens. The two said they anticipate security tokens to have a major positive impact on the global capital markets.
The new platform will take advantage of Binance's substantial international reach and MSE's track record and experience in "regulatory compliance and client due diligence." Binance is currently world’s largest cryptocurrency exchange by 24-hour adjusted trading volume. It sees nearly $822 million of trades daily.
On its part, MSX was established in July this year with an intention of partnering with leading crypto exchanges to create joint ventures in the country. MSE has run as a stock exchange for 26 years. Already, the platform established an MOU with OKEx to launch OKMSX, an institutional grade security-tokens trading platform. Binance and OKEx are both based in Malta, which is considered to have a good regulation on cryptocurrency.
The joint venture between MSX and OKEx will be finalized by the third quarter of 2018 while the platform will not be launched until the first quarter of 2019. MSX has also partnered with German-based Fifth Force that operates Neufund. Neufund lets companies tokenize equities and sell them via Equity Token Offerings (ETOs).
The partnership would see the two build a regulated and decentralized global stock exchange where tokenized securities would be listed and traded alongside crypto-assets.