Stargroup, Digital X Partner On “Two-way” Bitcoin ATMsbr>
Australian FinTech firm Stargroup has teamed with blockchain technology company Digital X to jointly offer and tailor a “two-way” ATM solution for buying and selling bitcoin. The joint venture will allow users to cash out bitcoin to Australian dollars.
Stargroup said that there are currently only 20 ATMs in Australia that can facilitate bitcoin transactions; however, conversion fees are in the range of 4 to 8 percent of the transaction value. Additionally, the vast majority are “one-way” ATMs, which means users can only purchase bitcoin and add it to their bitcoin wallet.
Under the agreement, the two companies will work together utilizing the existing financial infrastructure, bringing two-way bitcoin functionality to ATMs owned by Stargroup in Australia. Stargroup will be developing the ATM software for the two-way ATM bitcoin transaction, whereas DigitalX will be responsible for the development of an API to facilitate the bitcoin transactions with the ATM software.
Stargroup operates approximately 500 ATMs in Australia and manages another 2,400 ATMs via its wholly owned subsidiary StarLink. It also has an 11 per cent ownership stake in South Korean ATM manufacturer NeoICP, which has thousands more ATM machines under its wing.
“Stargroup is pleased to partner with DigitalX on this project and leverage its unique ownership of its ATM manufacturer to develop a two way ATM which is where a bitcoin owner can not only buy bitcoin but more importantly can cash their bitcoin out,” said Stargroup CEO Todd Zani. “This development may also be able to be applied to other cryptocurrencies and be distributed internationally.”
“With our growing success in blockchain consultancy services we view this opportunity as a suitable fit to offer ordinary Australians exposure to crypto currency and blockchain security,” said Digital X CEO Leigh Travers. “The success of this Joint Venture with Stargroup will add long-term revenue channels to our business and additional value to our shareholders.”