Coinbase Unveils Project Diamond; Executed Its First Digital Debt Instrument

Bits Logics Team . 13th Dec 2023
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  • Coinbase and Coinbase Asset Management have unveiled ‘Project Diamond’, a smart contract-powered platform.
  • Leveraging the robust Coinbase technology stack and Base, Project Diamond promises to deliver secure, compliant capital market activities.
  • The platform successfully executed its first digital debt instrument on November 10.

Coinbase and Coinbase Asset Management have unveiled “Project Diamond,” a smart contract-powered platform tailored for institutional use. The platform is designed to facilitate the seamless creation, purchase, and sale of digitally native assets, with the inaugural execution of the first debt instrument recently taking place. This milestone paves the way for Project Diamond’s entry into the Abu Dhabi Global Market (ADGM) RegLab sandbox.

Leveraging the robust Coinbase technology stack and Base, an Ethereum layer-2 blockchain, Project Diamond promises to deliver secure, compliant capital market activities. The overarching aim is to bridge the existing gap in blockchain infrastructure representation, where currently less than 0.25% of global assets are accounted for, presenting significant untapped efficiency gains.

With a focus on institutional adoption within the global cryptoeconomy, Project Diamond aims to empower institutions to embrace “next-generation financial technology.” The platform successfully executed its first digital debt instrument on November 10, demonstrating its technical feasibility to the Financial Services Regulatory Authority as it gears up to join the ADGM RegLab sandbox.

The digital debt instrument, denominated in USDC, marked a significant upgrade in operational efficiency, offering near-instant settlement speed within a single application on Base. This transaction mirrors the substantial flow of debt instruments in traditional finance, providing a simplified and accelerated financial process that enhances institutional participation in the cryptoeconomy.

Coinbase Asset Management envisions Project Diamond as a catalyst for a future where institutions can seamlessly create, distribute, and manage a diverse range of digitally-native assets directly on the blockchain. As the project evolves, Coinbase Asset Management invites world-class partners to join in shaping and realizing the future of the global financial system, with the collective goal of making finance as scalable as software.