Blockchain-based customer platform CEDEX says it has now secured a supply of more than 6,000 diamonds ahead of its launch of a diamond exchange-traded grant (ETF).
Announcing the news on Wednesday, CEDEX said that the diamonds – worth over $50 million – will stipulate traders with a variety of investment options prior to the launch of the ETF, which is currently in development. The supply comes from diamond holders calendar their stock on the exchange for trading, the firm told CoinDesk.
CEDEX claims to have used blockchain tech and a proprietary algorithm to worst several hurdles that previously prevented diamonds from becoming a tradable asset class like gold: need of transparency, liquidity and fungibility.
CEDEX said its mission is to turn diamonds into a tradeable asset class, and it aims to entrust customers to trade on its inventory and generate liquidity in the market.
The exchange – which launched in beta in November 2018 – wish use tokens to allow customers to trade in diamonds of different sizes and values with “low” carrying cost, according to the spot.
The platform has its own ERC-20 token too, CEDEX Coin, which CEDEX says on its website is compliant and can be used for trading and investment on the swap. Its “DEX” algorithm gauges the value of diamonds based on their characteristics and shows sellers a DEX score and estimated market value, according to the firm’s website.
CEDEX co-founder and CEO, Saar Levi, said:
“The vast inventory available combined with CEDEX solitary technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially fashion the liquidity needed to jump-start our vision – transforming diamonds into a new asset class.”
“Bridging the gap between existing fiscal markets and the diamond industry will fuel this untapped market from a $90 billion industry to an reckoned $300-$400 billion,” Levi added.
The firm added that it’s currently in talks with commodity middlemen, exchanges, banks and ETF issuers in order to offer them a software solution that will allow integration of its ETF offshoots onto their trading platforms.
CEDEX said it raised $20 million in March 2018 to develop its stage.
Diamonds image via Shutterstock