Crypto fund Neufund, Binance, one of the world’s largest cryptocurrency exchanges, and MSX, the innovation arm of the Malta Stock Exchange, have partnered together to form a decentralized global exchange and security token issuance platform.
Berlin-based Neufund revealed the new partnership in a blog post published on July 19, saying that the aim of the collaboration is to “create a regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets.”
According to the post, this new partnership will enable Neufund to become “the first end-to-end primary issuance platform for security tokens, in particular, equity tokens,” allowing many initial coin offering (ICO) projects to be listed on an exchange. Security tokens are tightly regulated in many markets, including the United States, where trade in security tokens is restricted by the US Securities and Exchange Commission (SEC).
The new decentralized exchange aims to “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.” Neufund revealed that seven projects have already decided to conduct an “Equity Token Offering (ETO)” on the new platform: Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors.
Neufund CEO and cofounder Zoe Adamovicz said that the new partnerships with Malta Stock Exchange and Binance “will ensure high liquidity to equity tokens issued on Neufund,” calling it “the first time in history that security tokens can be offered and traded in a legally binding way.”
The blockchain-based security token exchange, which will be “fully integrated with established financial markets” according to Chairman of the Malta Stock Exchange Joseph Portelli, will also help Binance achieve some of its strategic goals. Binance CEO Chanpeng Zhao said that this “ecosystem for issuing and trading securities on blockchain” helps further the company’s goal “to tokenize traditional financial assets.”