Cryptocurrency giant Binance and the Malta Stock Exchange have agreed to launch a new digital exchange for security token trading.

The security token trading platform will allow investors to trade and transfer crypto security coins.

The memorandum of understanding signed between the two came after Binance decided to extend its business to Malta, amid the country's efforts to become a hub for blockchain investors.

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.

This is not the first agreement between Binance and the MSE. Earlier this year, it announced that it "joined forces" with Binance for the launch of a programme designed to help start-ups.

However, it turns out no such agreement was formally in place. 

MSE chairman Joseph Portelli admitted no formal agreement had been signed, despite the press release, adding that the two sides simply had “agreed on the intent” of working with one another.