The Digital X Ltd (ASX: DCC) share price is on the move on Friday morning. The blockchain and asset management services company announced its participation to deliver ideas for the growth of digital finance.
At the time of writing, DigitalX shares are fetching for 12.5 cents, up 8.70%. It’s worth noting that its shares are a whisker away from breaking its multi-year high of 15.8 cents reached in mid-November.
What did DigitalX announce?
Investors are fighting to get hold of DigitalX shares following the company’s latest update.
In today’s release, DigitalX advised that it has entered into a partner agreement with the Digital Finance Cooperative Research Centre (Digital Finance CRC).
Established in 2018, the Digital Finance CRC brings together companies to undertake research and commercial activities to exploit the digital finance revolution. The group consists of organisations in the finance industry, the Reserve Bank, as well as academics from numerous Australian universities.
Importantly, this allows DigitalX to collaborate with other leading companies around Australia focused on financial and blockchain technologies. This relates to innovations in digital finance, including asset tokenisation, central bank digital currency and regulatory technology.
On 30 June 2021, the Australian federal government provided $60 million to the Digital Finance CRC for digital finance research.
What does this mean for DigitalX?
Under the agreement, DigitalX will commit up to $2.5 million in cash contributions over its 10-year tenure. Around $100,000 will be handed in the current financial year, with $150,000 following in the next financial year.
The company is already looking into research projects relating to digital organisational models such as Decentralised Autonomous Organisations (DAOs). Developing this tool can provide crucial insights for real-world investment decisions, and risk and investment management strategies.
The work of the Digital Finance CRC is expected to commence in 2022.
DigitalX chief product officer, David Beros commented:
We are excited to have now partnered with the Digital Finance CRC and to join a multi-disciplined group of companies and research universities undertaking important research and commercial development of new ideas for the growth of digital finance.
Importantly for DigitalX, this provides us with the opportunity to be part of a broader group and to work with research teams to investigate and commercialise ideas that are relevant to our business that may be beyond what we could do on our own.
We look forward to bringing our own skill set to the Digital Finance CRC and making a meaningful contribution to Australian financial technology innovation over the next 10 years.
About the DigitalX share price
The DigitalX share price has gained close to 30% in the past 12 months. Its shares reached a 52-week high of 15.8 cents in mid-November, before being sold off in the following weeks.
DigitalX commands a market capitalisation of about $92.81 million, with 742.44 million shares on issue.