Berlin-based blockchain startup Neufund has announced its collaboration with MSX, a subsidiary of the Malta Stock Exchange, and Binance cryptocurrency exchange, to build a regulated decentralized global stock exchange for listing and trading tokenized securities alongside crypto-assets.
The announcement follows the recent collaboration between Binance and Malta Stock Exchange to build a dedicated platform and a startup accelerator to focus on distributed ledger technology (DLT) and technology-driven initiatives.
Neufund said that with this partnership, it will become the first end-to-end primary issuance platform for security tokens, particularly equity tokens. According to the announcement, Binance will build the exchange for security tokens, including equity tokens.
“We are delighted to welcome Neufund as our key partner in building a Blockchain-based exchange that is fully integrated with established financial markets. With the upcoming pilot project we become a worldwide pioneer in digital finance,” Joseph Portelli, Chairman of the Malta Stock Exchange, said.
The platform will offer a secure way for secondary trading of equity tokens and enable companies to “fundraise on Blockchain in a legal way while offering much-needed liquidity.”
Seven companies have already decided to conduct an Equity Token Offering (ETO) with Neufund. These include Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors.
The partner firms aim to conduct a pilot project later this year. It will involve the public offering of tokenized equity on Neufund’s primary market. These equity tokens could be later traded on Binance and other crypto exchanges, pending regulatory and listing approvals, Neufund added.
“We are thrilled to announce the partnerships with Malta Stock Exchange and Binance, that will ensure high liquidity to equity tokens issued on Neufund. It is the first time in history, that security tokens can be offered and traded in a legally binding way. The upcoming pilot project will allow us to test the market’s reaction and realize the overall project idea in an environment with minimized risk.” comments Zoe Adamovicz, CEO and Co-founder at Neufund.
Malta has been making efforts to foster blockchain ecosystem in the country. Recently, the Parliament of Malta passed three bills that will establish a regulatory framework for DLT.
