Key highlights from SgHuat's communications with Investor Relations team
1. Most clients are institutional at present and institutions have been keen on the cryptocurrency trading and asset management solutions that Diginex is offering, particularly as a result of its focus on regulation, transparency and security. One of the products is Diginex Access: front-to-back trading, portfolio, risk management solution that enables trading of cryptocurrency and derivative instruments over various platforms. It is powered by Iviti's Tbricks platform.
2. In terms of the retail space, there are increased options for retailers being rolled out continuously: increased array of coins including Bitcoin, Ethereum and their autochthonous EQO token, greater range of fiat/withdrawal currencies, a mobile app and lending (margin) options. This will greatly increase retailer uptake and present a significant competition within the cryptospace.
3. Diginex has broken into Asia and EU, and is now targeting USA market. A significant revenue stream is EQUOS, Diginex's cryptoexchange platform. Commission-based fees are also generated from OTC Trading and Diginex Access. Diginex relies on a diversified revenue stream. Other revenue sources: Bletchley Park, a multi-manager fund, Digivault - a digital asset custody solution, and EQUOS Capital - a digital securitisation and advisory firm. Diginex's revenue streams are complementary, yet diversified.
4. With monies raised via convertible bond/listing late last year, Diginex balance sheet is cleared of debt and with the recent Share Warrants exercise, as well as recent $30 mil+ private placement at $15, Diginex is flush with case, and therefore there is less risk of share dilution in the coming months.
5. Coinbase is different from Diginex because Diginex offers institutional-focused derivative trading options, advanced asset management and structured products. Diginex believes that derivatives will enable it to pull ahead of the competition. Cryptoderivatives market is only a few times of the spot market, but for FX, the derivative market is 100x of the spot trading volume. Bitcoin Perpetual Futures contract has been launched in Jan 2021, with volumes reaching US$25 mn/day. ETH Perpetual Futures contract launching shortly.
6. Full licence application to SG's Monetary Authority Singapore submitted in May 2020. In HK, they have Type 4 and 9 licences. In fact, Diginex is already operating in most parts of the world, except a few countries, in particular, the United States.
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