DigitalX Ltd (ASX:DCC), a technology company specialising in blockchain application development and digital asset management services, today announced a follow-on investment in Bullion Asset Management Services Pte Ltd (BAM), a Singapore-based technology company.

DigitalX has entered into a Master Services Agreement (MSA) with BAM to act as the preferred technology provider for BAM’s ongoing product development. DigitalX’s equity interest in BAM is now valued at AUD$2.5 million (US$1.91m).

BAM’s wholly-owned subsidiary xbullion Holdings domiciled in the Cayman Islands launched its 100% physical-gold-backed digital token GOLD in September 2020. To grow the market for GOLD, BAM has created a technology roadmap which includes integrating xbullion on further trading platforms. In addition to GOLD, BAM plans to launch additional commodity backed products in the near future, including silver and other precious metals. DigitalX expects to provide the technical services to enable BAM to deliver these to market.

In 2019, DigitalX announced an investment of AUD$1.25 million into BAM at a price of AU$1.00 per share for a stake of approximately 17.5%. In order to maintain this shareholding position, DigitalX has elected to invest an additional US$250,000 at a price of US$1.00 per share. The new valuation represents an uplift of about 30% which values DigitalX’s equity holding in BAM at circa AUD$2.5 million.

DigitalX joins other major investors into the round including ASX-Listed Theta Gold Mines Ltd and Aura Group backed, Decentralised Capital.

DigitalX Executive Director, Leigh Travers commented:

“The value proposition for stakeholders in the bullion and metals marketplace is expanding through the advantages of digital infrastructure. DigitalX is pleased with the recent growth of BAM and looks forward to further accelerating the business with technical and corporate support. The recent strategic investment from ASX-Listed gold developer Theta Gold Mines Ltd (ASX:TGM) is testament to the quality of what has been achieved to date and DigitalX looks forward to continuing to support BAM as it looks to grow further.”