The Malta Independent 20 August 2019, Tuesday

Australian fintech heavyweight to launch institutional-grade security token exchange in Malta

Thursday, 27 September 2018, 09:55 Last update: about 12 months ago

Malta's 'blockchain ecosystem' is indeed attracting many and varied life forms, and the latest addition is the founder of Australia's largest independent trading platform by trading volume - of over AUD50 billion per annum.

Rick Klink, the founder of Paritech and OpenMarkets, yesterday announced he will head up Malta Digital Exchange (MDX), and bring his ground-breaking technology to the digital asset space.

The cryptocurrency and blockchain sector saw exponential growth in 2017, now a push towards regulation will provide trust and a safe environment for institutional investors, allowing them to participate in the global economy.

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Security tokens are the next generation of regulated securities, which are being built on blockchain-based infrastructure rather than being restricted to legacy systems.

MDX yesterday said it will aim to become the world's premier security token exchange.  That, in turn is expected to enable greater market efficiency, accessibility, liquidity and transparency within the capital markets.

Malta Digital Exchange will be a multi-asset digital exchange which focuses on virtual financial assets (VFA) and security tokens.

MDX said yesterday that it elected to establish itself in Malta because "at the forefront of innovative regulatory framework for virtual financial assets, which provide the ultimate foundation for the security token exchange".

"It's a very exciting time in the digital assets space with the rapid emergence of security tokens. Malta Digital Exchange is at the forefront of the current Capital Markets 2.0 wave," Rick Klink, who will serve as the MDX CEO, said yesterday.

MDX yesterday said it will leverage Paritech's technology, which specialises in the development and integration of low touch, low cost, stock market brokerage systems. The focus on cutting-edge technology and customized solutions, results in systems suitable for high-end securities trading applications.

The exchange will feature instant order matching T+0, adjustable and special fees (maker-taker), minimum and partial executions and limited and unlimited orders. The exchange is designed for high volume and features high-performance access for B2B clients.

The move follows a recent agreement between Binance and the Malta Stock Exchange to launch a new digital exchange for security token trading.  That security token trading platform will allow investors to trade and transfer crypto security coins.

The Malta Stock Exchange expressed hopes that the new trading platform would leverage the company's track record of operating as a regulated stock exchange and its experience in regulatory compliance and client due diligence.

Binance CFO Wei Zhou said the company was excited to help build the blockchain ecosystem in Malta.

"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," he added.


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