US cryptic exchange Bittrex became a shareholder in the Palladium of Malta, which is carrying out the world's first convertible currency offering (ICCO).
The US cryptocurrency exchange operator Bittrex has amassed a recent partnership with Palladium, buying a 10% stake in the Maltese blockchain company, the local newspaper Times of Malta reported on Sunday.
"We are thrilled to have such a global player on board." Bittrex's investment in Palladium confirms Malta's solid decision to be at the forefront of blockchain technology regulation, "said the founder of Palladium and president Paolo Catalfamo mentioned in the publication.
Prior to the investment of Bittrex, Palladium was owned by the banking holding company The betting platform Investar Holding and eSports Unikrn, which holds respectively 85% and 15% of the company. Lacking an official announcement and details about the agreements, it is not clear which of the aforementioned companies has sold a portion of its stake in Bittrex.
Palladium made the news in July, launching the first initial convertible coin offer (ICCO) in the world in collaboration with Bittrex and Unikrn. Unlike a traditional initial money supply (ICO), ICCO provides for the sale of a "tokenised convertible warrant" that will allow users to convert tokens into company shares three years after the issue.
The Palladium fundraising, valid until the end of September, the target is € 150 million, according to the July announcement. About half of the proceeds will be used for the planned acquisition of a controlling interest in an unspecified European bank. Approximately 35% of the accumulated funds will be used for the development of a new cryptocurrency exchange, which will operate according to the regulation of the Malta Financial Services Authority. The remaining 15% will go to "strategic investments in financial services and blockchain companies that integrate the Palladium business".
Bittrex bet on Palladium comes after the Maltese parliament has approved three cryptocurrencies and blockchain-related. Legislation has brought legal certainty and integrity to the growing virtual currency market in the archipelago, dubbed "Blockchain Island" by government officials introducing industry changes.
Bittrex, now the 18th top crypto exchange for total average trading volume, has also recently joined forces with colleagues Bitstamp, BitFlyer and Gemini Trust Company to create "Virtual Commodity Association Working Group". The self-regulating organization aims to monitor virtual commodity markets, develop industry standards and become a "precursor of training" of self-regulation activities for cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).