Binance, one of the world’s largest cryptocurrency exchanges by volume, and the Malta Stock Exchange are partnering to launch a new digital exchange for security token trading.
The new platform will allow investors to trade and transfer security tokens.
The agreement was signed on Tuesday by Malta Stock Exchange chairman Joe Portelli and Binance chief financial officer Wei Zhou.
Portelli said the government is a trailblazer in the blockchain space, adding that “whether you like it or not, the technology is here to stay.” He added that security token exchanges are bound to become the global standard in a few years.
The memorandum of understanding between the two parties aligns with Binance’s move to Malta earlier this year.
Binance CFO Wei Zhou said the company is excited to build a blockchain ecosystem in Malta. “This partnership will allow Binance and MSE to host traditional financial assets on blockchain technology through security tokens. We look forward to bringing more innovations to Malta and further establishing our presence here,” he said.
Malta Today reports that the country’s finance minister Edward Scicluna, who attended the signing of the MOU, said that “blockchain technology was revolutionary and clearly going to change the world.”
[the_ad id="42537"] [the_ad id="42536"]Binance announced a similar plan in July to expand into tokenized securities with the Malta Stock Exchange by partnering with investment platform Neufund to create a decentralized stock exchange.
Polish cryptocurrency exchange BitBay, which relocated to Malta in July, announced an agreement with the Malta Stock Exchange and Neufund last month to create Malta’s first crypto-to-fiat exchange.
Banking disruptor Revolut is also currently targeting Maltese customers in an effort to sign up 60,000 new users on its mobile app by the end of the year.
Malta has become a major blockchain hub for fintech entrepreneurs and developers because of the regulatory framework it established. Blockchain businesses and projects continue to flock to the Mediterranean “Blockchain Island” which is building an impressive ecosystem for distributed ledger technologies. According to research by Morgan Stanley, most cryptocurrency trading is moving to a legal base in Malta, which ranks first in the world for crypto trading volume, followed by Belize, Seychelles and the US.
Binance currently tops cryptocurrency trading volumes, according to data by CoinMarketCap, moving nearly $1 billion worth of trading in the past 24 hours. The exchange, which was founded in July 2017, expects a net profit of $500 million to $1 billion in 2018, according to its chief executive officer.
The Binance blockchain ecosystem is also comprised of startup incubator Binance Labs and Launchpad for blockchain projections, along with informational initiatives. The company recently launched Binance Academy to help educate enthusiasts about blockchain and cryptocurrencies.