A Global Hub for Blockchain Technology Welcomes Another Large Exchange Platform
The Malta Stock Exchange’s FinTech and digital asset subsidiary, MSX PLC, has signed a Memorandum of Understanding (MOU) with crypto exchange Binance. According to a September 11 report from The Times of Malta, the two companies will work together on launching a new security token digital exchange.
The agreement was signed by MSX chairman Joe Portelli and Binance chief financial officer Wei Zhou, with Malta finance minister Edward Scicluna also in attendance.
“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 in a press conference after the MoU signing.
This is not the first agreement between Binance and the MSE. In June 2018, the two companies formed a partnership to create the MSX FinTech Accelerator Programme — a startup accelerator that focused on FinTech and blockchain projects.
In addition to that, in July 2018 Binance revealed it would participate in a decentralized crypto bank project based in Malta, dubbed the Founders Bank.
Traditional Financial Assets on the Blockchain
Binance isn’t the only company that has been steadily expanding its business presence in Malta. The country’s pro-crypto atmosphere and a lenient regulatory stance earned it the moniker of Blockchain island, attracting many large crypto exchanges and companies focused on the blockchain.
Binance CEO Changpeng Zhao told Bloomberg that the country has become “a global hub for blockchain technology through active and transparent crypto regulations.”
The chairman of the Malta Stock Exchange, Joe Portelli, said that the country’s initiative to bring in crypto companies represents a “new market opportunity [to] develop and push the boundaries of the Maltese financial sector.”
OKEx, the international arm of Chinese platform OKcoin, signed a similar agreement to create a security token trading platform in July 2018. The three-way deal signed between MSX, OKEx and German Blockchain platform Neufund will focus on building a new exchange, called OKMSX.
At the time, Portelli said that the Malta Stock Exchange was thrilled to be teaming up with OKEx, which he called the leader in the digital currency sector. The Malta Stock Exchange was also looking forward to leveraging its expertise on the compliance and regulatory front to truly be a trailblazer within the security token sector, Portelli added.