DigitalX enters into revenue sharing agreement with Australia’s largest Bitcoin exchange

Published at Feb 8, 2017, in Technology

Blockchain enhanced software solutions company DigitalX (ASX:DCC), a group that assists consumers in making secure and cost-effective money transfers, has entered into a binding agreement with Blockchain Group (BGL), owner of ACX.io, the largest Bitcoin exchange in Australia by volume and order book.

In terms of the agreement, DCC will wind down its DigitalX direct operations by introducing these clients to BGL, and in consideration it will receive 50% of all revenue for customers introduced to the BGL digital currency exchange, as well as on other international exchanges that are rolled out over the next five years.

This agreement comes approximately three months after management announced that it was reviewing its Bitcoin operations with a view to leveraging its knowledge, trading platforms and customer base.

Explaining the value of DCC’s technology and also highlighting the challenges in expanding such a product, Chief Executive, Lee Travers said, “Whilst the platform provided invaluable experience in blockchain technology to the DigitalX development team, it also presented significant challenges in concurrently creating a world-class money transfer service”.

This agreement will effectively allow DigitalX to focus on its money transfer application, AirPocket, while receiving ongoing revenues from the BGL arrangement.

AirPocket is a mobile bill pay and money remittance application providing low-cost, secure and instant transfer solutions. The application is built using blockchain technology, allowing the platform to scale on demand due to the cloud-based technology.

World Bank remittance inflows data for April 2015 suggests the size of the global remittance market is nearly US$600 billion.

Management estimates its initial target markets, Latin America and the Caribbean, will open up a US$65 billion remittance opportunity.

However, how much of the market DCC is able to corner is speculative at this stage and therefore investors shouldn’t act on this fact alone, but should take all publicly available information into account and seek professional financial advice.


Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


SEE THE PORTFOLIO

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why Finfeed.com is Australia’s leading small cap publication

Founded seven years ago, Finfeed.com is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise.

Finfeed.com provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more.

Finfeed.com is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!

X