Decentralized cryptocurrency exchanges themselves might have some way to go in garnering both sufficient liquidity and popularity, but that hasn’t stopped the likes of Binance and Neufund from collaborating with the view of producing a decentralized stock exchange.
In what’s tipped to be the first “regulated and decentralized, global stock exchange for listing and trading tokenized securities alongside crypto-assets”, Binance, Neufund, and MSX (a subsidiary of the Malta Stock Exchange) will work to launch a pilot decentralized exchange by the close of the year.
According to early reports, Binance will endeavor to build the platform’s underlying architecture.
In a statement on Neufund’s blog, Binance CEO Changpeng Zhao offered that “We are glad to partner with Neufund over the pioneering idea to create a complete ecosystem for issuing and trading securities on Blockchain. Today’s announcement marks a new chapter for Binance’s development, with the goal to tokenize traditional financial assets.”
A Neufund spokesperson similarly quipped that “We are thrilled to announce the partnerships with Malta Stock Exchange and Binance, that will ensure high liquidity to equity tokens issued on Neufund. It is the first time in history, that security tokens can be offered and traded in a legally binding way.”
Neufund has set the self-goal of becoming the ‘first end-to-end primary issuance platform for security tokens’, and aims to offer secondary trading of equity tokens. The view may one day enable firms around the world to raise funds through blockchain technology.
According to the release, seven companies have thus far decided to conduct an Equity Token Offering with Neufund, including Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors.
Speaking more broadly, the move is not the only decentralized exchange Binance plans to flirt with. Earlier this year, Binance announced a new pivot that will see the launch of a decentralized cryptocurrency exchange dubbed Binance Chain.
Explaining the move as part of a wider bid to transition its services from ‘a company to a community’, the firm has now announced that Binance Chain would be used to transfer different blockchain assets and would re-appropriate the company’s Binance Coin token to its own native blockchain, rather than leverage Ethereum’s ERC20 standard.