DigitalX AmerX Bank Convene a Joint Venture
Latest information on our desk revealed that the Australian cryptocurrency company DigitalX partnered up with American Bank AmerX. The 50-50 partnership is aimed to generate more revenue by offering crypto advisory services and assisting in security token offerings.
This development is a good news for the crypto firm DigitalX which is having a tough year. Reports revealed that the company lost about 86% in its share value, a decline mostly attributed to Bitcoin price drop.
This joint venture company the two entities formulates in the partnership- DX Americas LLC. Americas Executions (AmerX) Bank provides crypto advisory services to some of its banking customers. The new entity Dx Americas’ main task would be to facilitate security token offerings as well as offering crypto advisories.
According to reports, the two firms will share any proceedings from DX Americas in form of profits equally. AmerX a Security and Exchange Commission (SEC) complaint bank has 50% share in the new formation DX Americas. The remaining 50% of shares are under Australia’s cryptocurrency company Digital X.
“The STO market represents the next wave of blockchain-based asset adoption and with the secondary trading markets opening up in 2019, the timing for the new venture is right,” said DigitalX managing director Leigh Travers.
DX Americas a Product of Crypto Company-Bank Partnership
According to reports, the main aim of forming DX Americas is to generate revenue by charging consulting fees. The company expects to charge fees for structures appropriate for STO (security token offerings). Additionally, the entity will also offer crypto advisory services and smart contract related services.
DigitalX was the advisory firm behind the successful Power Ledger ICO managing to raise for the solar energy firm $34 million. The ICO initiative in October 2017 was the first ICO in Australia. Currently, ICOs faced a lot of criticism in Australia following a lump sum amount of crippling regulatory oversights.
The regulatory pressure in both the United States and Australia is squeezing cryptocurrency companies. Expansions of crypto-related ventures are difficult and partnership with registered banks such as AmerX is a good gesture of hope. Accusations of possible price manipulation by some whales within the crypto space is further hurting the industry.
Many cryptocurrency experts and enthusiast alike believe that cryptocurrency is the ultimate currency of the future. Development in the sector is progressing especially at institutional levels. Companies such as Ripple contributes significantly to enabling a mainstream adoption of cryptocurrency related products.
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