DigitalX’s blockchain-based regtech solution selected for funding by Department of Industry as ASIC eyes use
Link copied to
DigitalX’s innovative share trading compliance solution is drawing positive attention from Australia’s Department of Industry and the Australian Securities & Investments Commission.
DigitalX (ASX:DCC) has long been saying that its Drawbridge regulatory compliance software could be a key catalyst for the Perth-based company.
The ASX is scheduled in April to upgrade from its aging mainframe-based system, CHESS, to a blockchain-based replacement that Drawbridge will seamlessly integrate with for share trading compliance purposes.
As more sharemarkets move to blockchain technology, DigitalX has a vision for Drawbridge to become part of the governance standard for the world’s 630,000 publicly traded companies.
Now the Australian government is sitting up and taking notice.
DigitalX announced on Tuesday that it was one of five companies selected for funding from the Department of Industry’s Business Research and Innovation Initiative for the possible use of regulatory technology by the Australian Securities and Investments Commission (ASIC).
“The BRII challenge focuses on the development of a technology solution to help ASIC better analyse corporate disclosures,” DigitalX said.
“The goal is to deliver a more efficient and effective way for ASIC to supervise and enforce disclosure and reporting obligations of listed companies.”
DigitalX will use an initial $100,000 grant to expand Drawbridge to enable the analysis of market and social media data, to identify cases where price sensitive information wasn’t properly disclosed to the market.
It’ll also assess pathways for the commercialisation of Drawbridge internationally.
That work will begin in February and is expected to last about three months.
Two of the five companies may be selected for further grants of up to $1 million to develop and test a proof of concept over another 15 months.
“Working towards an innovative solution has the potential to transform ASIC’s ability to harness technology to reduce regulatory burden, while enhancing market integrity,” says ASIC Commissioner Cathie Armour.