diff --git a/contracts/LDGX.sol b/contracts/LDGX.sol
index a8d7455..4aba94b 100644
--- a/contracts/LDGX.sol
+++ b/contracts/LDGX.sol
@@ -23,6 +23,8 @@ contract LDGX is StandardToken {
   address public DGX_TOKEN_STORAGE;
   bool public initialized;
 
+  event Transfer(address indexed from, address indexed to, uint256 value, bytes32 indexed data);
+
   constructor(address _dgxTokenAddress, address _dgxTokenStorage) public {
     totalSupply_ = 0;
     DGX_TOKEN_ADDRESS = _dgxTokenAddress;
@@ -38,6 +40,18 @@ contract LDGX is StandardToken {
     require(success);
   }
 
+  // transfer function to support ERC-223 <https://github.com/ethereum/EIPs/issues/223>
+  function transfer(address _to, uint256 _value, bytes32 _data)
+    public
+    returns (bool _success)
+  {
+    if(isContract(_to)) {
+      _success = transferToContract(_to, _value, _data);
+    } else {
+      _success = transferToAddress(_to, _value, _data);
+    }
+  }
+
   // first deposit to make sure there is already some DGX/LDGX
   function firstDeposit(uint256 _dgxIn) public {
     require(!initialized);
@@ -111,4 +125,41 @@ contract LDGX is StandardToken {
   {
     _dgxLdgx = totalSupply_.mul(10**9).div(ERC20(DGX_TOKEN_ADDRESS).balanceOf(address(this)));
   }
+
+  ////////////////////////// PRIVATE FUNCTIONS ////////////////////////////////
+
+  function transferToContract(address _to, uint256 _value, bytes32 _data)
+    private
+    returns (bool _success)
+  {
+    require(balances[msg.sender] >= _value);
+    balances[msg.sender] = balances[msg.sender].sub(_value);
+    balances[_to] = balances[_to].add(_value);
+    TokenReceiver(_to).tokenFallback(msg.sender, _value, _data);
+    emit Transfer(msg.sender, _to, _value, _data);
+    _success = true;
+  }
+
+  function transferToAddress(address _to, uint256 _value, bytes32 _data)
+    private
+    returns (bool _success)
+  {
+    require(balances[msg.sender] >= _value);
+    balances[msg.sender] = balances[msg.sender].sub(_value);
+    balances[_to] = balances[_to].add(_value);
+    emit Transfer(msg.sender, _to, _value, _data);
+    _success = true;
+  }
+
+  function isContract(address _address)
+    private
+    constant
+    returns (bool)
+  {
+    uint length;
+    assembly {
+      length := extcodesize(_address)
+    }
+    return (length > 0);
+  }
 }
diff --git a/contracts/mock/MockContractWithFallback.sol b/contracts/mock/MockContractWithFallback.sol
new file mode 100644
index 0000000..86c4b9c
--- /dev/null
+++ b/contracts/mock/MockContractWithFallback.sol
@@ -0,0 +1,12 @@
+pragma solidity ^0.4.23;
+
+contract MockContractWithFallback {
+  bytes32 public latestData;
+  function tokenFallback(address _sender, uint256 _value, bytes32 _data)
+    public
+    returns (bool _success)
+  {
+    latestData = _data;
+    _success = true;
+  }
+}
diff --git a/contracts/mock/MockContractWithoutFallback.sol b/contracts/mock/MockContractWithoutFallback.sol
new file mode 100644
index 0000000..bb9379a
--- /dev/null
+++ b/contracts/mock/MockContractWithoutFallback.sol
@@ -0,0 +1,9 @@
+pragma solidity ^0.4.23;
+
+contract MockContractWithoutFallback {
+  bytes32 public latestData;
+
+  constructor() public {
+    latestData = "a";
+  }
+}
diff --git a/test/LDGX.js b/test/LDGX.js
index 2f802d3..56f6468 100644
--- a/test/LDGX.js
+++ b/test/LDGX.js
@@ -1,6 +1,8 @@
 const a = require('awaiting');
 
 const LDGX = artifacts.require('./LDGX.sol');
+const MockValidContract = artifacts.require('./MockContractWithFallback.sol');
+const MockInvalidContract = artifacts.require('./MockContractWithoutFallback.sol');
 
 const {
   deployLibraries,
@@ -218,6 +220,56 @@ contract('Lite DGX', function (accounts) {
     });
   });
 
+  describe('EIP223 transfer', function () {
+    let ldgxBalance;
+    let validContract;
+    let invalidContract;
+    before(async function () {
+      // deposit some DGX to get LDGX
+      await contracts.dgx.transferAndCall(contracts.liteDgx.address, bN(1e9), '', { from: addressOf.testUser1 });
+      ldgxBalance = await contracts.liteDgx.balanceOf.call(addressOf.testUser1);
+      // deploy necessary mock contracts
+      validContract = await MockValidContract.new();
+      invalidContract = await MockInvalidContract.new();
+    });
+    it('[can transfer to valid contract]', async function () {
+      const initialBalance = await contracts.liteDgx.balanceOf.call(addressOf.testUser1);
+      const transferAmount = bN(200);
+      assert.ok(await contracts.liteDgx.transfer.call(
+        validContract.address,
+        transferAmount,
+        '',
+        { from: addressOf.testUser1 },
+      ));
+      await contracts.liteDgx.transfer(validContract.address, transferAmount, '', { from: addressOf.testUser1 });
+      assert.deepEqual(await contracts.liteDgx.balanceOf.call(validContract.address), transferAmount);
+      assert.deepEqual(await contracts.liteDgx.balanceOf.call(addressOf.testUser1), initialBalance.minus(transferAmount));
+    });
+    it('[can transfer to any account address]', async function () {
+      const initialBalance = await contracts.liteDgx.balanceOf.call(addressOf.testUser1);
+      const transferAmount = bN(200);
+      const recipient = randomAddress();
+      assert.ok(await contracts.liteDgx.transfer.call(
+        recipient,
+        transferAmount,
+        '',
+        { from: addressOf.testUser1 },
+      ));
+      await contracts.liteDgx.transfer(recipient, transferAmount, '', { from: addressOf.testUser1 });
+      assert.deepEqual(await contracts.liteDgx.balanceOf.call(recipient), transferAmount);
+      assert.deepEqual(await contracts.liteDgx.balanceOf.call(addressOf.testUser1), initialBalance.minus(transferAmount));
+    });
+    it('[cannot transfer to contract without tokenFallback]: revert', async function () {
+      const transferAmount = bN(200);
+      assert(await a.failure(contracts.liteDgx.transfer.call(
+        invalidContract.address,
+        transferAmount,
+        '',
+        { from: addressOf.testUser1 },
+      )));
+    });
+  });
+
   describe('withdraw DGX', function () {
     it('[withdraw more than ldgx balance]: revert', async function () {
       assert(await a.failure(contracts.liteDgx.withdraw.call(