Malta keeps its lead in implementing crypto innovations as a German firm Neufund announced in its blog about their new partnership with a Malta-based Crypto Exchange Bitbay. Their aim is to make sure that investors can trade with fiat currencies on Equity Tokens.
WHAT IS AN ETO?
Equity Token Offering Is a new fundraising system, which makes it possible for companies to issue Equity Tokens on Blockchain. Equity Tokens ensure important equity-like rights for the investors and the issuers. In legal terms, Neufund’s Equity Tokens are securities categorized as Investment Assets. The offering is governed by the German Banking System and its regulations.
Earlier, Neufund stated its syndicate with Malta Stock Exchange and Crypto Exchange Binance in order to establish its ground to be the world’s first end-to-end issuer of Equity Tokens. Within a legal framework, international companies can raise funds on Blockchain. Several firms such as Founders Bank, Brille24, Uniti, MySwooop, Next Big Thing, Blockstate and Emflux Motors, are drawn to this project working on ETO.
Neufund Co-founder and CEO, Zoe Adamovicz said: “We welcome BitBay among our partners with great excitement. It is Neufund’s mission to make fundraising more inclusive and easier for companies, while bringing investors more liquid investment assets, and our partnership will enable investors to liquidate their investments directly into fiat currencies.”
WHY IS IT IMPORTANT?
1. Malta is the first European state with legal certainty for cryptocurrencies
2. This project is one more milestone for Malta in becoming a blockchain island attracting more investors and cryptocurrency oriented companies. Originally Polish - BitBay, which titles itself as a leading European crypto exchange, offers tradable fiat pairs with Polish Zloty, Euro and the U.S. Dollar, has recently changed its base to Malta.
3. ETO market cap will reach $1 trillion by 2020 according to the CapLinked research
4. Trading in fiat currencies on ETO’s will increase liquidity