As of October 29th 2018, the Malta Digital Exchange (MDX) has announced the signing of a Memorandum of Understanding (MOU) involving the listing of precious metal-backed security tokens with Canamex Gold Corporation. The signing could lead to two tokens— one backed by gold, the other silver— becoming available to trade on the MDX platform.
Why Canamex Targeted MDX to list GOLDUSA and SILVERUSA
Canamex Gold Corporation is a public listed company registered in British Columbia, Canada. It is currently traded on the Canadian Securities Exchange (CSE).
According to the MOU, Canamex is very likely to list and trade gold-backed GOLDUSA and silver-backed SILVERUSA security tokens on MDX.
Based in Malta, MDX plans to leverage the clear regulatory framework from the Maltese government to become a premier security token exchange. In July of 2018, the Maltese Parliament passed several bills into law which established the world’s first regulatory framework for Distributed Ledger Technology (DLT). They have a strong reputation for the positive support of blockchain technology.
David Vincent, CEO of Canamex, described how the vision of his company aligns with that of MDX.
“Only a few, with soul in the game, are sufficient to really move the needle. The capital markets do not evolve by consensus, the majority, academic economists, over regulation, or tea and scones at Harrods. All one needs is asymmetry, such as today’s inefficient and outdated capital markets, and someone with soul in the game, such as MDX and Canamex; then the needle can be moved to bring about the change.”
“It is a very exciting time in global capital markets with the upcoming licensing of regulated Security Token Exchanges such as MDX. Security tokens are set to democratise capital markets globally, providing far greater transparency, regulation and pricing efficiency to both token issuers and investors. We are very pleased to be partnering with a highly innovative and progressive company such as Canamex in providing a secondary trading marketplace for their security tokens.”
The Benefits of the Malta Digital Exchange Explained
The obvious benefit of MDX entails its licensing and regulated compliance.
Despite the SEC’s recent launch of FinHub, it continues to drag its feet when it comes to clear regulatory guidance for tokenized securities. The situation is not specific to the US, however. In Europe, ESMA— the EU’s securities authority— was recently asked to provide further clarification for the sake of clear regulations when it comes to the tokenization of real-world assets.
Thus, while regulatory bodies around the globe are caught up with hesitation, the Maltese Parliament has allowed for MDX to feature the compliant secondary market trading of security tokens.
Other benefits of MDX include instant order matching T+0, adjustable and special fees (maker-taker), minimum and partial executions, and both limited and unlimited orders.
Ultimately, the new announcement involves Canamex— a publicly traded Canadian company— listing security tokens on the emerging Maltese exchange, MDX. The security token industry is evolving fast, and if other regulatory bodies don’t step up to the plate and provide enterprises with clear guidance, MDX could emerge as an elite security token exchange.
What do you think the new announcement says about MDX? Does this indicate a strong future for MDX? We’d love to know what you think in the comments below.
Image courtesy of Pixabay.
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