Things move fast in the world of blockchain, cryptocurrencies, and distributed ledger technologies.
Only three months after announcing it was working with Malta’s government — embracing the country’s new Distribute Ledger Technology (DLT) Regulation — blockchain fundraising platform Neufund is taking the next logical step.
Berlin-based Neufund has announced today that it is collaborating with MSX, the innovation vehicle of the Malta Stock Exchange (MSE), and is also partnering with cryptocurrency exchange Binance.
The aim is to create a regulated and decentralized stock exchange for listing and trading tokenized securities alongside crypto assets. All parties will run a pilot project to establish the parameters for a global platform.
Neufund claims that as a result of the partnership, this will become the first end-to-end primary issuance platform for security tokens — in particular, equity tokens. That’s important. According to CapLinked, the market cap of equity tokens alone is projected to reach $1 trillion by 2020.
The pace at which Neufund is moving is a shot in the arm for the blockchain technology industry. After raising $11 million last year, the company has opened an office in Malta and launched its Equity Token Offering (ETO) platform. Many blockchain projects have yet to see the light of day, so when the likes of Neufund and others exhibit progress against the investments made, it helps the entire ecosystem.
Seven companies have already decided to conduct an ETO with Neufund, including Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate, and Emflux Motors.
“We are thrilled to announce the partnerships with Malta Stock Exchange and Binance that will ensure high liquidity to equity tokens issued on Neufund,” CEO and cofounder Zoe Adamovicz said. “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.”
The collaboration is yet another addition to the Blockchain Island ecosystem in Malta. The EU member state recently passed the DLT and blockchain bills that cleared the path for companies to grow their startups on the island.
The Malta Stock Exchange has recently announced a dedicated platform and a startup accelerator that will focus on DLT and blockchain technology initiatives, with financial support from Binance. Malta’s Blockchain Island is due to host Delta Summit, a conference focused on the DLT industry, to promote its support for blockchain startups.
At the speed the market is moving, almost everything will have changed yet again by the time doors open on that event.