DigitalX Limited announced it has successfully completed a technology proof of concept for digital investment funds by creating a distributed ledger based token representing fund units on the ASX Synfini test platform. Asset tokenisation is the process by which ownership of an asset is recorded digitally and can be exchanged by transferring ownership of the digital token. The benefits of asset tokenisation include: · lower transaction costs with greater automation; · elimination of counterparty risks using instant settlement; and · expanded access to asset returns through fractionalised ownership of assets.

The proof of concept has been completed to demonstrate the viability of tokenisation in traditional financial markets, as well as DigitalX's capabilities in this space. Following this proof of concept, the Company is working on tokenisation projects designed to make ownership of the DigitalX Fund more accessible to investors in a robust and regulatory compliant manner. The initiative demonstrates how each fund unit can be represented as a token acting as a digital twin of the fund's ownership register of unit holders.

These digital forms of ownership create new pathways for improved outcomes and access to investment opportunities as financial services providers become increasingly connected to digital asset ecosystems such as the ASX Synfini platform.