DigitalX Limited (ASX:DCC) Executive Director Leigh Travers talks about the growing interest in blockchain solutions for real world problems and the company's new DigitalX Bitcoin Fund.
Ortenzia Borre: Hello, I'm Ortenzia Borre, for the Finance News Network. And joining me today is Executive director of DigitalX (ASX:DDC), Leigh Travers. Leigh, welcome to FNN.
Leigh Travers: Great to be with you, Ortenzia.
Ortenzia Borre: Now, Leigh, could you give us an introduction to DigitalX (ASX:DDC)?
Leigh Travers: DigitalX (ASX:DDC) has been involved in the blockchain and Bitcoin market since 2014, when we listed on the ASX. We've been involved in the Bitcoin mining space, from application, development, trading, to supporting some of the early exchanges and institutions with Bitcoin. And more recently, we're involved with providing blockchain consultancy services to more traditional businesses, on how they can use the technology, as well as launching digital asset fund management products.
Ortenzia Borre: Now, cryptocurrencies and blockchain have had an incredible run a couple of years back. Can you talk us through some of the cases?
Leigh Travers: Yeah, so in terms of the digital asset marketplace, it certainly is a volatile market. You'd be pleased to know though, that Bitcoin's still sitting above $10,000 AUD. So there is a lot of support and strength in the market right now. In terms of the particular use cases, well, it's still a relatively immature and new technology, but we are starting to see some of the leading edge industries starting to adopt the technology.
Ortenzia Borre: Now to your business. Can you talk us through blockchain consulting?
Leigh Travers: So blockchain consulting is really about using DigitalX's expertise, having been in the marketplace for over five years now, and helping traditional businesses harness the technology. How can they reduce costs in the business? How can they increase transparency, and how can they increase trust about what they're doing, on a single source of truth, on the blockchain ledger.
Ortenzia Borre: Can you give us an example of a client you're currently working with?
Leigh Travers: We're working with Bullion Asset Management. That's a company based out of Singapore, that is based of gold bullion experts. And what we're doing is enabling investors to get access to physical gold bullion that's held in vaults in Singapore, London and Sydney, through blockchain technology. And what that will deliver to investors buying this gold bullion is access to wholesale rates. So direct from bullion refinery in a way that they typically go through a retail bullion dealer charging three, four, five percent, we're able to get that at near spot rates for them, because of the benefits that blockchain can deliver.
Ortenzia Borre: And what about asset management?
Leigh Travers: Asset management is really allowing investors to get access to this exciting asset class in a familiar and easy way, allowing DigitalX to represent digital assets, whether that's the Top 10 Index, or our newly launched Bitcoin Fund, and providing that with the easiest, most lowest cost way of getting access to this exciting asset class.
Ortenzia Borre: Do you want to talk to us a little bit more about the new Bitcoin Fund?
Leigh Travers: So the Bitcoin Fund is something we've just announced in November. Getting access to Bitcoin is still quite difficult. So the decision process for investors is, is Bitcoin, as a digital asset, in our investment mandate? Secondly is, which exchanges can I trust to purchase Bitcoin from? And then more importantly, what are the technical challenges, what are the audit challenges, and what are the custody challenges around holding Bitcoin through self-custody? And what DigitalX is trying to do, through the DigitalX Bitcoin Fund, is allow these traditional investors the opportunity to get access to this exciting asset class in the lowest cost, easiest to access, manner possible. And this is for qualified investors, which we're bringing to the market this month.
Ortenzia Borre: Now to your finances and strategy. Could you provide a comment for us please?
Leigh Travers: Our finances at DigitalX are very strong at the moment. Last quarter we just announced we're sitting at over $12 million in working capital. That's Australian. And we're in a great position to be able to leverage the expertise that we have amongst the consulting team, as well as launching new fund products with our Bitcoin Fund, to really execute on providing the opportunity to commercialise blockchain technology, as well as be the one stop shop for the best access to Bitcoin and digital assets in Australia.
Ortenzia Borre: Now, with all the exciting things happening at DigitalX, could you tell us, where would you like to see the company this time next year?
Leigh Travers: This time next year, it's really about attracting clients. These are large clients, some of the largest in WA, about using our blockchain consulting expertise, to bring blockchain into their business. So securing clients on that side. And then on funds management, it's really about growing fund. The two products that we have launched to market now are something that we can execute on over the next 12 months. So I look forward to speaking to investors, whether that's institutions or high net wealth, about adding digital assets and Bitcoin to their investment portfolio.
Ortenzia Borre: Thank you so much for joining us, Leigh, and talking to us about DigitalX (ASX:DDC) and the exciting prospects ahead for you.
Leigh Travers: My pleasure, Ortenzia. Thank you.