The Malta Stock Exchange has collaborated up with some of the biggest cryptocurrency exchanges in the masses.
In a partnership with Neufund and Binance, it plans to design the very first decentralised global stock exchange based on the blockchain technology. Based in Berlin, the equity fundraising platform has big plans for its partnership with Binance.
The aim for the exchange is the allow businesses in the EU to design tokenised securities dubbed Equity Token Offerings. This will allow them to utilise the blockchain to raise funds from customers completely legal.
With the pilot intending to launch this year, the CEO of CapLinked, Eric M. Jackson had this to say:
“The blockchain holds enormous potential for the issuance of securities. Tokenised securities provide improved transactional efficiency, increased liquidity, and greater financial inclusion than using pieces of paper to represent ownership in an asset. And with an ecosystem of issuance services, regulated exchanges, and transactional compliance tools coming online this year, we estimate that market cap of equity token alone could reach $1 trillion by 2020.”
With the underlying technology being similar to the traditional stock market, Neufund will seek out businesses that are looking for capital through issuing token securities with the Equity Token Offering.
Since it is based on the Ethereum blockchain, real world equity shares are ‘tokenised’ which allow businesses from around the world to combine the ICO, a traditional IPO and a VC round of funding.
The company states:
“Neufund has successfully created a legal and technical infrastructure that serves as a primary market for companies from both the blockchain and non-blockchain space to offer tokens guaranteeing equity rights, which Neufund has coined ‘equity tokens.’ Neufund is already regulated in a way that allows companies to conduct fully legal fundraising on the blockchain.
The aims of Neufund is to motivate start-ups and entrepreneurs that are looking for liquidity beyond borders.
The collaboration signs a breakthrough for fintech development, paving the way to list (legally) and trade tokenised securities. The full platform is intended to release early next year, granting their service for people worldwide form Malta.