Coinbase Asset Management Launches Project Diamond for Institutional Investors
Coinbase Asset Management has introduced Project Diamond, a platform designed for institutional investors to issue and trade blockchain-based digital debt instruments. The project leverages Coinbase Asset Management’s Ethereum scaling network, Base, and incorporates various essential elements such as Coinbase Prime’s custody service, the exchange’s web3 crypto wallet, Circle’s USDC stablecoin, and the layer-2 network Base. Together, these components form a blockchain-powered capital marketplace.
Project Diamond Receives Approval and Executes First Debt Instrument
Project Diamond has obtained in-principle approval from the Financial Services Regulated Activity of Abu Dhabi Global Market. It has already issued and distributed its first debt instrument, a short-term discount note denominated in USDC stablecoin, executed on the Base platform to demonstrate its capabilities to Abu Dhabi regulators.
Access for Registered Institutional Users Outside the United States
Currently, Project Diamond is available to registered institutional users located outside of the United States. This launch comes at a time when there is fierce competition to integrate traditional financial assets like bonds and credit into blockchain systems. Tokenizing real-world assets (RWAs) is expected to improve settlement speeds, reduce operational costs, and enhance transparency. By 2030, the market for tokenized RWAs is projected to reach $10 trillion.
Digitally Native Assets on the Blockchain
Project Diamond differentiates itself by creating digitally native assets directly on the blockchain instead of simply tokenizing existing instruments. Shaun Martinak, Head of Infrastructure Development at Coinbase Asset Management, highlights the efficiency of creating and maturing assets entirely on-chain. Coinbase aims to address the lack of global assets represented on blockchain infrastructure, which currently stands at less than 0.25%.
Hot Take: Project Diamond Revolutionizes Digital Debt Instruments
Coinbase Asset Management’s launch of Project Diamond brings a groundbreaking solution to the issuance and trading of blockchain-based digital debt instruments. By integrating various key components and leveraging Coinbase Prime’s custody service, the exchange’s web3 crypto wallet, Circle’s USDC stablecoin, and the layer-2 network Base, Project Diamond creates a capital marketplace entirely on the blockchain. With approval from Abu Dhabi regulators and its first debt instrument executed on Base, Project Diamond demonstrates its capabilities and potential for institutional investors. This launch comes at a pivotal moment in the tokenization of real-world assets (RWAs) market, with Project Diamond aiming to create digitally native assets directly on the blockchain. Coinbase is poised to play a significant role in bridging the gap between traditional financial assets and blockchain infrastructure.
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