Coinbase launches blockchain-based institutional platform
Project Diamond aims to transform institutional engagement in crypto markets.
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Coinbase and its asset management division, Coinbase Asset Management, have launched Project Diamond, a platform that enables institutional investors to create, buy, and sell digital assets.
Project Diamond is a smart contract platform developed using Coinbase’s advanced technology stack and its layer-2 blockchain, Base. Its main goal is to streamline operations and enhance efficiency in institutional capital market activities involving digital assets.
Coinbase, which is the US’s largest cryptocurrency exchange, reports,
“On November 10, we successfully issued, distributed, and matured the first digital debt instrument on Project Diamond. This was a crucial technical demonstration of the platform’s capabilities for the Financial Services Regulatory Authority as we prepare to join the ADGM RegLab sandbox.”
The platform aims to integrate seamlessly with, rather than replace, traditional financial market frameworks. It bridges the gap between digital and conventional investment strategies for regulated entities.
Project Diamond has already received preliminary approval from the Financial Services Regulated Activity (FSRA) of the Abu Dhabi Global Market (ADGM). This approval allows the platform to develop financial technology services within the RegLab, initially catering to registered institutional users outside the United States.
Although only a tiny fraction of global assets (0.25%) are currently managed on blockchain platforms, Coinbase believes that Project Diamond marks a significant step toward increasing institutional adoption and participation in the digital asset space.