Neufund, a Berlin-based Blockchain protocol for securities’ tokenization and issuance has announced its collaboration with MSX, an innovation vehicle of the Malta Stock Exchange (MSE), and a partnership with Binance, one of the biggest cryptocurrency exchanges globally. The aim of both ventures is to create a regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets. The parties will soon run a pilot project. The collaboration is yet another addition to the #BlockchainIsland ecosystem located in Malta, an EU member state.
According to CapLinked, the market cap of equity tokens alone is projected to reach $1 trillion by 2020 and thanks to the partnership with MSX, a subsidiary of the Malta Stock Exchange and Binance, Neufund will become the first end-to-end primary issuance platform for security tokens, in particular, equity tokens. 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. Already 7 companies have decided to conduct an Equity Token Offering (ETO) with Neufund: Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors.
Neufund together with its partners aim to conduct a pilot project later in 2018 which will include the public offering of tokenized equity on Neufund’s primary market which may later be tradable on Binance and other crypto exchanges pending regulatory and listing approvals.
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.” commented Zoe Adamovicz, CEO and Co-founder at Neufund.
Binance will work on creating an exchange ready for security tokens, including equity tokens:
We are glad to partner with Neufund over the pioneering idea to create a complete ecosystem for issuing and trading securities on Blockchain. Today’s announcement marks a new chapter for Binance’s development, with the goal to tokenize traditional financial assets,” added Chanpeng Zhao, CEO of Binance, on the announcement.
The envisaged partnership marks another step forward for Malta towards adapting Blockchain technology. The EU member state has recently passed the DLT/Blockchain bills which cleared the path for innovative companies for further growth. Also Malta Stock Exchange has recently announced a dedicated platform and a startup accelerator to focus on DLT and technology driven initiatives, with the financial support of Binance.
The Chairman of the Malta Stock Exchange Mr Joseph Portelli said:
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.