Coinbase and Coinbase Asset Management have introduced “Project Diamond,” a smart contract-powered platform designed to enable institutions to create, manage, buy, and sell a variety of digitally native assets directly on-chain.
Initially, only institutional users who have registered outside of the United States will be able to utilize Project Diamond, according to Coinbase Asset Management.
The announcement states that it utilizes Coinbase Prime custody, Coinbase’s web3 wallet, the stablecoin, and the Ethereum Layer 2 blockchain Base, which Coinbase incubates.
On November 10, the platform executed its first digital debt instrument as a proof of concept for the Financial Services Regulatory Authority of the United Arab Emirates.
The demonstration was done in advance of joining the Abu Dhabi Global Market RegLab after being given the go-ahead to carry out regulated activity in the sandbox in principle.
According to its website, the ADGM RegLab is a specifically designed regulatory framework that offers a controlled environment for FinTech participants to develop and test novel solutions.
According to Coinbase, there is a considerable opportunity for efficiency gains because less than 0.25% of global assets are currently stored on blockchain infrastructure. Project Diamond intends to close this gap.
Its first digital discount note demonstration was transacted within a single application at an almost instantaneous settlement speed on Base and was denominated in USDC.
Following an overnight decline in the value of Bitcoin, cryptocurrency stocks, such as MicroStrategy (MSTR) and Coinbase (COIN), fell 6% and more than 5%, respectively, yesterday amid a general market sell-off.
