A German blockchain-based equity fundraising platform is to open a satellite office in Malta, the government announced on Tuesday. 

Neufund is based in Berlin and allows companies to issue equity tokens on a blockchain, either privately or publicly, as a means of raising capital. 

The company operates on the Ethereum blockchain - the second largest cryptocurrency by market capitalisation, after bitcoin - with users earning Neufund tokens in exchange for making use of the platform. 

Founded in 2016, the company is hoping to combine the benefits of traditional venture capital fundraising rounds with the transparency of blockchain technology. 

Although Neufund is blockchain-based, its business model targets traditional, non-blockchain businesses which are seeking to raise funds. 

In a statement confirming Neufund's decision to open a Malta office, the parliamentary secretariat for digital economy said the company had held several meetings with junior minister Silvio Schembri ahead of its decision to branch out to Malta. 

“We are impressed by the work done so far by the Maltese government and its pro-new technology stance," said Neufund CEO Zoe Adamovicz. "Malta should serve as a model for other countries and regulators. We are excited to contribute in building strong and stable blockchain ecosystem on Malta."

Malta has made a concerted effort to attract blockchain-based industries in recent months, with the Prime Minister saying he wanted the country to become "the blockchain island."

Massive cryptocurrency exchange Binance, which said last month that it would be setting up a Malta office, has been the biggest coup to date. 

The MFSA is currently in the process of hearing out stakeholders in the sector, as Malta prepares to introduce legislation regulating virtual currencies and initial coin offerings.