Introducing “Project Diamond”
Coinbase and Coinbase Asset Management have launched a new platform called “Project Diamond,” which is powered by smart contracts. The goal of this platform is to enable institutions to easily create, manage, purchase, and sell various digitally native assets directly on the blockchain.
The Initial Application
The initial application of Project Diamond will be limited to registered institutional users outside the United States. It will utilize Coinbase Prime custody, the Coinbase Web3 wallet, the USDC stablecoin, and the Ethereum Layer 2 blockchain Base.
Project Diamond recently demonstrated its capabilities by successfully issuing and distributing a digital debt instrument on the platform. This demonstration showcased the platform’s feasibility to regulatory authorities.
The Significance
This on-chain financial activity represents a significant improvement in operational efficiency, streamlining financial processes and opening doors for institutional involvement in the crypto economy.
“Coinbase Asset Management is building Project Diamond to enable a future where institutions can create, distribute, and manage a wide range of digitally-native assets directly on-chain. Together, we will make finance scale like software.”
The Motive Behind Project Diamond
Coinbase aims to bridge the gap between traditional finance and blockchain technology. Currently, less than 0.25% of global assets are represented on blockchain infrastructure, leaving room for significant efficiency gains. Project Diamond seeks to capture these gains by allowing institutional use of next-generation financial technology.
By leveraging Coinbase’s technology stack and Base, Project Diamond aims to serve as a platform for creating, buying, and selling digitally native assets.
This announcement follows Coinbase’s recent upgrade to its wallet app, which now allows users to send stablecoins using social media and messaging platforms.
Hot Take: Coinbase Launches “Project Diamond” to Enable Institutional Use of Blockchain Technology
Coinbase and Coinbase Asset Management have unveiled their latest initiative, “Project Diamond,” which aims to facilitate the creation, administration, and trading of digitally native assets directly on the blockchain. This platform, powered by smart contracts, targets institutional users outside the United States initially. The successful execution of a digital debt instrument on the platform demonstrates its potential to streamline financial processes and improve operational efficiency. With less than 0.25% of global assets represented on blockchain infrastructure, Coinbase aims to bridge this gap and capture significant efficiency gains by allowing institutions to utilize next-generation financial technology. Project Diamond serves as a stepping stone towards a future where finance scales like software.
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