Coinbase Asset Management’s Project Diamond aims to close the gap in blockchain infrastructure representation of global assets.
In a significant step towards unlocking institutional adoption of the global cryptoeconomy, Project Diamond, a smart contract-powered platform developed by seasoned asset managers at Coinbase Asset Management (Coinbase AM), has officially launched. The platform, designed for institutions to seamlessly create, buy, and sell digitally native assets, recently executed the first-ever debt instrument, showcasing its capabilities as it prepares to enter the Abu Dhabi Global Market (“ADGM”) RegLab sandbox.
Less than 0.25% of the total global assets are currently represented on blockchain infrastructure, leaving substantial efficiency gains untapped. Project Diamond aims to address this gap by enabling institutional use of next-generation financial technology, leveraging the Coinbase technology stack and Base, an Ethereum layer-2 blockchain.
On November 10, Project Diamond achieved a significant milestone by successfully issuing, distributing, and maturing the first digital debt instrument on the platform. This technical demonstration of feasibility was presented to the Financial Services Regulatory Authority in preparation for entry into the ADGM RegLab sandbox.
The digital debt instrument, denominated in USDC (USD Coin), was transacted within a single application on Base, providing near-instant settlement speed. This demonstration reflects the potential for significant operational efficiency upgrades, simplifying crucial financial processes and facilitating institutional participation in the cryptoeconomy.
Coinbase Asset Management, the driving force behind Project Diamond, envisions a future where institutions can seamlessly create, distribute, and manage a wide range of digitally-native assets directly on the blockchain. The project is inviting world-class partners to join them in reshaping the future of the global financial system with a focus on making finance scale like software.
Coinbase Asset Management, LLC is a leading institutional digital asset manager specializing in delivering investment strategies and infrastructure to bridge digital and traditional markets. Coinbase AM brings deep expertise in trading and investing across digital and traditional asset classes, offering solutions calibrated to remove barriers and promote institutional engagement in digital assets while adhering to fiduciary standards.
Developed by Coinbase AM, Project Diamond is set to serve registered institutional users outside the U.S. The platform leverages the Coinbase technology stack, including Coinbase Prime custody, Web3 Wallet, the Project Diamond platform, and USDC, all interconnected with the Base layer-2 blockchain. Project Diamond has received in-principle approval from the Financial Services Regulated Activity (FSRA) of Abu Dhabi Global Market (ADGM) to conduct the regulated activity of Developing Financial Technology Services within the RegLab.
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