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- In a new announcement, Coinbase has revealed its plans to launch a smart contract-powered platform for institutional players.
- In collaboration with Coinbase Asset Management, the exchange hopes to bring Project Diamond to the market.
Coinbase has officially announced a highly promising project designed to promote crypto adoption for institutional players looking to break into the cryptocurrency market.
Leading U.S.-based cryptocurrency exchange Coinbase has announced a groundbreaking project aimed at institutional investors in the cryptocurrency industry. According to the official announcement shared on the exchange’s official blog, Coinbase and Coinbase Asset Management are working to create a new platform dubbed “Project Diamond.”
The project is a smart contract-powered platform created mainly for institutions. Project Diamond will allow institutions to create, buy, and sell digitally native assets.
At the core of this project is an attempt to solve a lingering problem in the market. As the announcement noted, less than 0.25% of total global assets are represented on blockchain infrastructure.
As a result, a significant amount of efficiency gains have gone unrepresented. Coinbase’s goal is to bridge the gap between these assets and blockchains by making it possible for institutions to utilize next-generation financial technology.
The launch of Project Diamond will allow institutions to create, buy, and sell digitally native assets. Institutions will be able to leverage the power of the Coinbase technology stack and Base, an Ethereum layer-2 blockchain.
First Digital Debt Instruments Successfully Issued on Project Diamond
Back in November, the first digital debt instrument on Project Diamond was successfully issued. It was later distributed and matured on the platform as a technical demonstration of feasibility to the Financial Services Regulatory Authority while it prepares to join the ADGM RegLab sandbox.
Further revealing details of the transactions, the announcement read;
While this onchain financial activity mirrors the massive flow of debt instruments that power global companies in traditional finance, the digital discount note, denominated in USDC, was transacted within a single application at near-instant settlement speed on Base.
The transaction signifies a massive upgrade to operational efficiency. It marks the simplification of a significant financial process that typically opens the doors for institutional players to partake in the crypto-economy.
As noted earlier, Project Diamond is highly facilitated by Coinbase Asset Management. Coinbase Asset Management, LLC (“Coinbase AM”) is a leading institutional digital asset manager. Its goal is to deliver investment strategies and infrastructure to bridge digital and traditional markets.
The digital asset manager is building Project Diamond in a bid to facilitate crypto adoption in the future, for institutional players who can go on to create, distribute, and manage a wide range of digitally-native assets directly on-chain.
Conclusively, Coinbase disclosed that it will open its doors to global world-class firms hoping to partner with the exchange and strengthen its mission to create the future of the global financial system.
