Coinbase-backed Project Diamond will leverage the Base L2 network and the Coinbase technology stack to enable institutional investors to tokenize and trade real-world assets.
Leading United States cryptocurrency exchange by registered users and average daily traded volume Coinbase Global Inc (NASDAQ: COIN), has continued to widen its global market reach with Binance Holdings Ltd under regulatory siege. Backed by notable institutional investors with deep pockets like BlackRock Inc (NYSE: BLK) and Circle Internet Financial, Coinbase has managed to grow throughout the crypto bear market to a stable crypto institution with several profitable products. Notably, the company has not stopped at anything to achieve the set goals of enabling mass adoption of Bitcoin, Web3, and blockchain technology. Furthermore, more institutional investors have shown increased demand for digital assets and more so to tokenize their real-world assets to access global funding.
Coinbase Launches Project Diamond
According to the announcement, the Coinbase-backed Project Diamond is a smart contract-powered platform designed to help institutions seamlessly mint, and trade tokenized assets. Notably, Project Diamond leverages the company’s layer two scaling solution dubbed Base, which has a total value locked (TVL) of about $365 million and a stablecoins market cap of around $104 million. Additionally, the Project Diamond taps on the Coinbase technology stack to deliver a secure, and compliant capital market activity that will stir the mass adoption of blockchain technology and crypto assets.
“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,” the company noted.
According to the report, the first digital debt instrument on Project Diamond was issued on November 10. Notably, the first digital debt instruments were insured in accordance with the Financial Services Regulatory Authority (FSRA), as Project Diamond prepares to join the ADGM RegLab sandbox. The digital debt instruments on the Project Diamond are denominated in Circle’s USDC, which is settled on the Base network.
“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 on-chain,” the company added.
The new product has been hailed by Coinbase co-founder and Chief Executive Officer Brian Armstrong as a revolutionary milestone towards onboarding more institutions onboard the crypto wagon in a regulated manner. Moreover, tokenized real-world assets can be used to fund more companies and unlock an unbacked majority, which is financial freedom for most investors.
Market Outlook
The increased adoption of Coinbase products has helped its stock market grow nearly 300 percent year-to-date to trade around $139.92 on Wednesday. The $33 billion valued company has managed to maneuver the crypto regulatory crackdown due to its calculated moves that include slow product development compared to its peers that have suffered the wrath.
