Binance and Malta Stock Exchange Partner on Security Token Exchange Project

Binance and the Malta Stock Exchange have extended their partnership, agreeing to jointly build a new digital platform for security token trading.

Binance, the world’s largest cryptocurrency exchange by market capitalization, has partnered with the Malta Stock Exchange (MSX) for the planned launch of a new digital platform for security token trading.

“@MaltaStockExch pleased to announce an MOU [Memorandum of Understanding] signed, with crypto giant @binance, to set up a security token Exchange. We are becoming a leading crypto centre of excellence,” the MSX said in a Twitter post on Tuesday.

The agreement was signed by MSX chairman Joe Portelli and Binance chief financial officer Wei Zho, with Malta finance minister Edward Scicluna also in attendance.

Local news outlet Times of Malta quoted Zho as saying in a press conference after the MoU signing: “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.”

This is not the first agreement between Binance and the MSX. In June, the two parties joined forces to create the MSX FinTech Accelerator Programme — a startup accelerator to focus chiefly on fintech and blockchain projects. In addition, Binance revealed in July its participation in a Malta-based decentralized crypto bank project, dubbed Founders Bank.

Binance, as well as several other large cryptocurrency exchanges including OKEx, have relocated their headquarters to Malta, looking to tap into the island’s pro-blockchain policy.

Last year, Prime Minister Joseph Muscat revealed his ambitions to establish the archipelago as a ‘Blockhain Island’. In July, the Maltese parliament approved three cryptocurrency and blockchain-related bills. Most recently, Malta unveiled the world’s first blockchain and cryptocurrency stock exchange as the Malta Stock Exchange created a new subsidiary to take charge of the island’s digital asset and fintech transactions.

On Tuesday, Malta’s finance minister Scicluna reiterated the government’s positive stance on cryptocurrencies, describing blockchain technology as revolutionary and one that would change the world. He noted, however, that like many other new technologies, blockchain and cryptocurrencies are associated with certain risks.