The collaboration between Berlin-based Neufund and Bitbay, a cryptocurrency exchange based out of poland, will reportedly result in the establishment of Malta’s first cryptocurrency exchange that claims to provide solutions regarding fiat withdrawals.
The Malta-based exchange will allow the users to purchase equity tokens with fiat currencies. According to the report, Neufund’s objective is to see itself as the first company to issue security tokens, with the major focus on equity tokens. The company cited a study conducted by Polymath, a research firm based in Canada, which predicted that the value of security token market will jump to $20 trillion by the year 2020. Firm’s intention is backed by the belief that the tokenized securities will cater to the needs of much-needed liquidity in the traditional investment assets, including the equity investment options.
Equity Token Offering is essentially a new method of fundraising. ETOs enable any company, whether based on blockchain or not, to issue tokens on blockchain of private or public nature.
Neufund CEO Zoe Adamowicz, who is thrilled about this revolutionary development said, “This will be the first crypto secondary market trading tokenized securities against fiat currencies. We are very keen to start the partnership with Bitbay since it will offer clients a really easy way to purchase and sell cryptocurrencies using fiat currency.”
Bitbay plays the role of the first ever exchange firm helping companies to liquidate their equity tokens with fiat currency. Bitbay is apparently the biggest digital exchange in Europe and offers various fiat pairs like the Polish Zloty, Euro, and the U.S. dollar.
CEO of Pinewood (the firm which operates Bitbay.net) Paweł Sobków said,equi
The success of the venture depends on the blockchain and cryptocurrency related regulations governing Malta. The EU member state is more or less a crypto friendly nation as Bitbay moved its operations from Poland to Malta owing to its crypto favouring regulations. Though Malta comes across as a crypto friendly nation, 3 DLT relating bills are still in consultation stages waiting to be passed by Malta’s parliament.