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Coinbase and Coinbase Asset Management announce Project Diamond, a smart contract-powered platform for institutions to create, buy, and sell digitally native assets.

TL;DR: Project Diamond, a smart contract-powered platform designed by seasoned asset managers for institutions to seamlessly create, buy, and sell digitally native assets, has launched with the execution of the first debt instrument on the platform, in preparation to enter the Abu Dhabi Global Market (“ADGM”) RegLab sandbox. The platform leverages the Coinbase technology stack and Base to deliver secure, compliant, capital market activity that will continue to unlock institutional adoption of the global cryptoeconomy.

By Coinbase

Product

, December 12, 2023

, 2 min read time

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Today, less than 0.25% of total global assets are represented on blockchain infrastructure, leaving massive efficiency gains uncaptured. Our goal is to close this gap by enabling institutional use of next-generation financial technology. Project Diamond is a platform to create, buy, and sell digitally native assets leveraging the power of the Coinbase technology stack and Base, an Ethereum layer-2 blockchain.

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On November 10, the first digital debt instrument on Project Diamond was successfully issued, distributed, and matured on the platform as a technical demonstration of feasibility to the Financial Services Regulatory Authority as it prepares to join the ADGM RegLab sandbox. 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 marks a powerful upgrade to operational efficiency; a simplification of an important financial process that further unlocks institutional participation in the cryptoeconomy. 

Coinbase Asset Management is building Project Diamond to enable a future where institutions can create, distribute and manage a wide range of digitally-native assets directly onchain. On our journey, we seek world class partners to join us in imagining and creating the future of the global financial system. Together, we will make finance scale like software. 

ABOUT COINBASE ASSET MANAGEMENT: 

Coinbase Asset Management, LLC (“Coinbase AM”) is a leading institutional digital asset manager, delivering investment strategies and infrastructure to bridge digital and traditional markets. Coinbase AM has deep expertise in trading and investing across digital and traditional asset classes. Our solutions are calibrated to remove barriers and promote institutional engagement in digital assets subject to fiduciary standards.

ABOUT PROJECT DIAMOND: 

Project Diamond is being developed by Coinbase AM and initial use cases will be for registered institutional users outside the U.S. only. Project Diamond harnesses the power of the Coinbase technology stack: Coinbase Prime custody, Web3 Wallet, the Project Diamond platform, and USDC, all connected to the Base layer-2 blockchain. Project Diamond has received in-principle approval from the Financial Services Regulated Activity (FSRA) of Abu Dhabi Global Market (ADGM) to conduct the regulated activity of Developing Financial Technology Services within the RegLab.

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