Australia's largest bitcoin exchange ACX.io takes over all clients of Bitcoin listed company DigitalX to accelerate international development

Blockchain Global Limited (BGL) recently announced that it will take over all customers of DigitalX, a Bitcoin company listed on the Australian Stock Exchange. DigitalX will bring existing platform customers to BGL's Bitcoin exchange platform ACX.io. ACX.io has become the largest Bitcoin exchange in Australia in terms of order volume.

Under the agreement, BGL will take over the management of DigitalX’s global clients, which is expected to significantly accelerate ACX.io’s international development by creating a market for Bitcoin-USD trading pairs.

DigitalX and ACX.io platforms will share compliance processes, recommended technologies, service providers and best practices. BGL will be responsible for providing banking services, trading software, and custody of funds and personal information.

“Together with the DigitalX team, we see tremendous synergies to expand DigitalX’s business with the ACX.io platform. In addition to providing additional liquidity for our mining operations, the expertise we gain from this partnership will greatly benefit our corporate accelerator program and management consulting division. - Sam Lee, CEO of BGL”

BGL was formerly known as Bitcoin Group Limited, which was founded in 2014. The company rebranded last year after expanding its business from bitcoin mining to consulting and corporate accelerator programs. BGL's management consulting arm, Bit Technology, can provide clients with advice on commercial blockchain applications. The company's incubator center, Bit Fund, is dedicated to providing financial relief and consulting to blockchain startups of all types.

BGL also manages ACX, a Melbourne-based bitcoin exchange incubated by Bit Fund, which is growing rapidly, with revenues of A$1.9 million and A$5.9 million in 2015 and 2016 respectively.

ACX is the Bitcoin exchange with the highest trading volume and liquidity in Australia, currently accounting for 48% of the world's AUD-BTC transactions. The platform's average daily trading volume reaches 1 million Australian dollars, and there is no handling fee for buying and selling Bitcoin. However, if you want to withdraw money to an Australian bank account, you will be charged a 1% handling fee.

The exchange has almost no local Australian competitors. Its largest Australian dollar bitcoin trading counterparty is Quoine Exchange from Singapore. The two exchanges are currently competing in four other major markets.

“In January 2017, our average daily revenue was AUD 3,000. The ACX platform processes an average daily trading volume of over AUD 1 million. From this foundation, we look forward to entering the next chapter of development with the DigitalX team to become a global Bitcoin exchange and liquidity provider. ACX General Manager Allan Guo”

DigitalX (ASX stock code: DCC) is currently a blockchain payment solution company. The company was originally a Bitcoin mining and exchange platform. In June 2014, it was officially listed on the Australian Stock Exchange.

The company has now abandoned its mining business, but DigitalX’s annual report states that DIgitalX had sales of $17 million in less than a year. Because the platform has “automated processes and therefore requires little supervision,” the platform’s annual revenue last year was as high as $13.8 million.

Under the agreement with BGL, DigitalX has agreed to accept 50% of ACX’s revenue from Digital’s customers as a condition. DigitalX CEO Leigh Travers said:

“This is a great opportunity to turn digital assets into assets.”

This agreement will generate ongoing revenue for DigitalX without any associated operating costs, allowing us to focus on the growth of our money transfer app AirPocket.

AirPocket is a peer-to-peer cross-currency mobile remittance app, known as the "Uber for remittances." The app's operating model is similar to the Bitcoin payment app Abra, with a teller network on the receiving end, but AirPocket's payment track uses a proprietary blockchain instead of the Bitcoin blockchain. In May 2015, when the company announced that it would launch the app, its stock price rose 89% in one day.

In October 2015, DigitalX began to transform from Bitcoin, and the company name was changed from Digital BTC to DigitalX. The company said at the time:

“This rebrand represents a strategic shift from a focus on Bitcoin as a value mechanism to a focus on Bitcoin software development.”

The new blockchain infrastructure created by DigitalX claims to be able to process 12 transactions per second, compared to the current 3 transactions per second on the Bitcoin network. However, the company’s new blockchain tokens have no store of value to back them, and they can only rely on funding from partners to support operations.

In October 2016, AT&T Mexico agreed to use the AirPocket app, which allows U.S. consumers to transfer mobile top-ups directly to their mobile accounts on the AT&T network in Mexico. AT&T holds nearly 15% of the Mexican mobile market, with approximately 12.4 million users.

Servicio UniTeller, which also signed a deal with DigitalX, processes more than 15% of remittances from the U.S. to Latin America corridor and has more than 40,000 offices worldwide.