OKEx, considered to be the largest cryptocurrency exchange by trading volume, has partnered with the Malta Stock Exchange (MSE) to create a trading platform for security tokens. This is the second development in a day, with Binance and Neufund recently announcing a similar partnership with the MSE.
The partnership was formalized in the form of a Memorandum of Understanding (MoU) signed in Valletta, Malta on July 19, 2018. Both parties will endeavour to finalize a Joint Venture to be established by the third quarter 2018.
The new exchange will operate under the name OKMSX and will leverage OKEx’s digital asset operations and security expertise, along with the Malta Stock Exchange’s 26-year track record of operating as a regulated stock exchange with extensive experience in regulatory compliance and client due diligence. OKMSX will be well positioned to develop an institutional grade security-tokens trading platform, according to OKEx. This new platform will launch in the first quarter of 2019, catering to global clients.
“Malta is taking the helm of regulating the blockchain technology and cultivating a regulated cryptocurrency and ICO epicentre. This joint venture marks our confidence in the Maltese government as well as our commitment to providing an efficient, secure, and transparent blockchain trading environment to clients worldwide. We believe OKMSX will be a milestone in the economic development of Malta,” said Tim Byun, chief risk officer and head of government relations of OKEx.
Joseph Portelli, chairman of the Malta Stock Exchange, said, “Malta is on the cusp of becoming a centre of excellence within the global digital innovation landscape. We are thrilled to be teaming up with OKEx, a leader in the digital currency sector, to leverage our expertise on the compliance and regulatory front to truly be a trailblazer within the security token sector.”
“Today, Malta opened up a way for legally binding listing and trading of tokenized securities. We are proud of Malta Stock Exchange to enter a partnership with a worldwide leader in primary offerings on blockchain such as OKEx. I look forward to the fruitful collaboration in the future.” said Silvio Schembri, Member of Parliament and the Junior Minister within the Office of the Prime Minister for Financial Services, Digital Economy and Innovation.
Early this month, OKEx announced that is accelerating its expansion into Malta by establishing an office and hiring local staff, a move it expects to complete by the end of the third quarter.
Neufund, Binance create ‘world’s first decentralized stock exchange’
Meanwhile, Neufund, a German based blockchain protocol for securities tokenization and issuance will be partnering with MSX, an innovation vehicle of the Malta Stock Exchange.
Projects for the equity token market indicate that the total market cap for cryptocurrencies should exceed the $1 trillion mark by the year 2020. Neufund and Binance’s partnership with MSX will supposedly create the first end-to-end primary issuance platform for security tokens, or equity tokens. This should secure ways for the secondary trading of equity tokens and also allow companies around the world to kickstart fundraising exercises on blockchain in a legal manner.
Neufund also revealed that there are already seven companies who have decided to conduct an Equity Token Offering (ETO) with Neufund. These are: Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors. Neufund is also planning another pilot project for later in 2018 which will include a public offering of tokenized equity on Neufund’s primary market. This may later be tradeable on Binance as well as other crypto exchanges pending regulatory and listing approvals.
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