Coinbase and Coinbase Asset Management have introduced “Project Diamond,” a cutting-edge smart contract-powered platform tailored to empower institutions in creating, managing, buying, and selling a diverse range of digitally native assets directly on-chain.
Initially, Project Diamond’s application will be limited to registered institutional users outside the U.S. Leveraging Coinbase Prime custody, the web3 wallet from Coinbase, the stablecoin, and the Ethereum Layer 2 blockchain Base incubated by Coinbase, the platform offers a seamless experience for institutional asset management, according to an official announcement.
Project Diamond marked a significant milestone on Nov. 10 by executing its inaugural digital debt instrument, serving as a feasibility demonstration for the UAE’s Financial Services Regulatory Authority. This demonstration positioned Project Diamond for entry into the Abu Dhabi Global Market RegLab, having received in-principle approval to conduct regulated activities within the sandbox. The ADGM RegLab provides a specialized regulatory framework, offering a controlled environment for FinTech participants to develop and test innovative solutions.
Highlighting that less than 0.25% of global assets are currently represented on blockchain infrastructure, Coinbase emphasizes the substantial potential for efficiency gains. Project Diamond aims to bridge this gap by facilitating the representation of a more extensive array of assets on blockchain infrastructure. The platform’s initial digital discount note demonstration, denominated in USDC, showcased a near-instant settlement speed on Base.
Coinbase contends that Project Diamond’s innovative approach holds promise for increased efficiency and accessibility in the institutional management of digital assets. The platform’s launch aligns with Coinbase’s commitment to advancing blockchain adoption and fostering innovation within the digital asset space.
In recent developments, Coinbase’s crypto exchange listed SEAM, the governance token of the decentralized lending and borrowing platform Seamless Protocol. Additionally, Coinbase introduced money transfers via links sent on popular platforms such as WhatsApp, TikTok, and Instagram using Coinbase Wallet. The progressive initiatives underscore Coinbase’s ongoing efforts to expand its offerings and enhance user experiences in the evolving cryptocurrency landscape.