The Malta Stock Exchange (MSE) and crypto exchange Binance have partnered to launch a digital trading platform for crypto security tokens.

“This partnership will allow Binance and MSE to host traditional financial assets on blockchain technology through security tokens,” says Binance CFO Wei Zhou. “We look forward to bringing more innovations to Malta and further establishing our presence here.”

However, MSE Chairman Joseph Portelli has stressed that there is still no formal agreement in place. Both ventures have “agreed on the intent” of partnering to launch the trading platform.

The MSE is hoping the new exchange will leverage its track record of operating as a regulated stock exchange, its experience in regulatory compliance and know your customer (KYC) compliance.

It is also looking to leverage Binance’s experience in cryptocurrency trading and get help with any operational difficulties.

Binance and MSE have previously come together to launch a programme aimed at helping blockchain startups in Malta.

Malta is gradually becoming one of the world’s most significant blockchain and crypto hubs after passing regulation and fomenting the establishment of related firms on the Mediterranean island nation.

MSE, the sixth to offer crypto trading

The MSE is not the first stock exchange to venture into crypto trading. The New York Stock Exchange recently announced the creation of a new firm called Bakkt that is designed to hold and manage investors’ cryptocurrency.

SIX, which operates and owns Switzerland’s primary stock exchange, launched its new SIX Digital Exchange for users to trade cryptocurrency.

Germany’s second largest stock exchange, the Stuttgart Börse, is also diving into crypto with plans to develop a multilateral cryptocurrency trading platform as well as an initial coin offerings (ICOs) venue.

Last but not least, the Jamaica Stock Exchange last month said it plans to start offering cryptocurrency trading to its clients.