Today’s news is multifaceted:
- Diamond Standard to launch the regulated sale on September 28, offering 5,000 Coins for a total of $25 million, subject to final BMA approval. Like an index, the offering establishes a permanent benchmark for all future commodities.
- Diamond Standard announces the world’s first diamond market maker, the Diamond Standard Exchange [dse.diamondstand.co].
- Diamond Standard commodity futures will be listed and traded on MGEX via the CME Globex® platform, pending final Commodity Futures Trading Commission (CFTC) approval.
The Regulator Approved Diamond Commodity
While treasured for hundreds of years, diamonds are the only top ranked precious natural resource not commonly held by investors—who own at least 15% of the world’s gold, silver, platinum and palladium. Diamond Standard unlocks the value of diamonds as an asset for the first time in the form of a secure, deliverable, and easily traded product—just like gold bars.
“Diamonds were the ultimate challenge to commoditize. A trillion-dollar natural resource, untapped by investors, is finally available as a liquid commodity,” said Cormac Kinney, Founder and CEO of Diamond Standard. “Our groundbreaking Diamond Standard Coin is a standardized, fungible diamond asset that can be quickly and easily traded. New technology solved an age old problem.”
Diamond Standard applied to be regulated by the Bermuda Monetary Authority (BMA) and a digital assets license from the BMA is pending final issuance. The Gemological Institute of America (GIA)—the world’s leading gem lab with nine facilities worldwide—grades each individual diamond and assembles the Diamond Standard Coin in their labs. GIA delivers the Coins directly to purchasers, or their selected custodian. Diamond Standard’s internal auditor is Deloitte.
The Diamond Standard Coin comes with the keys to a blockchain token, stored in the embedded wireless chip. When the token and commodity are held by custodians, such as Gemini Trust Company, a leading cryptocurrency exchange and custodian, or International Depository Services, a subsidiary of Dillon Gage, in their vaults approved by the COMEX and Intercontinental Exchanges, owners will be able to list and trade the token on digital exchanges.
The offering price of the Coin is $5,000, payable in USD or ETH. There are 5,000 Coins available for an initial commodity offering of $25 million. Starting September 28, 2020, interested investors can purchase via www.diamondstandard.co.
Investors in Diamond Standard Co. include:
- Miami International Holdings, parent company of several SEC regulated exchanges in the U.S., and the Bermuda Stock Exchange.
- Rick Rieder and several other senior BlackRock executives, and hedge fund founders including Jamie Dinan, Glen Kacher, Jim Leitner and Larry Sapanski.
After the initial sale, the market price of the Coin will be established by independent trading on various digital exchanges. Like gold, there will be a daily fix, used to settle the futures and options, report the net-asset-value for any securities, and mark-to-market institutional funds.
“Diamond Standard has done what others could not do for centuries—make diamonds liquid for investors,” said Greg Kwiat, CEO of Kwiat & Fred Leighton. “It underscores the enduring value of natural diamonds and their unique investment attributes.”
Fungible, Digitized and Blockchain Verified
“By weight, diamonds are the most valuable natural resource. It was the lack of fungibility, price discovery and liquidity that blocked investor demand,” said Managing Partner and Head of Research at Fundstrat Global Advisors, Thomas Lee. “The Diamond Standard commodity solves those problems, and I would not be surprised if investor asset allocation to diamonds is ultimately similar to gold, silver or platinum.”
All diamonds are purchased through the Diamond Standard Exchange (DSE), the world’s first loose diamond market maker, through a transparent bidding process. The DSE bids on millions of varieties of diamonds using an automated market-making system, adjusting bids until a statistically valid sample of diamonds can be purchased. The geological yield of each sample is permanently public, so that anyone can verify the validity of any sample, or any Coin.
Diamond Futures Contracts
Diamond Standard announced today, in partnership with Miami International Holdings, an agreement to develop and launch a suite of futures contracts based on the Diamond Standard Coins, including both physically-delivered and cash-settled contracts. The Diamond Standard commodity futures will be listed on the MGEX via the CME Globex® platform, pending CFTC approval.
“This partnership is a tremendous opportunity for both parties, and the MIAX Exchange Group looks forward to serving as the exclusive exchange group for Diamond Standard-based derivatives products,” said Thomas P. Gallagher, Chairman and CEO of MIH. “In creating a pioneering commodities product that functions as both a physical and digital asset, the Diamond Standard team has created an opportunity for the development and expansion of unique securities and commodities products.”
Interested investors can learn more about the offering and the diamond commodity at www.diamondstandard.co.
About Diamond Standard Co.
Diamond Standard Co. is the creator of the world’s first and only regulator-approved diamond commodity. By unlocking diamonds as a market-traded asset, Diamond Standard helps investors to access a natural resource currently worth $1.2 trillion – more than all the world’s silver and platinum combined. A breakthrough deliverable hard asset, the diamond commodity provides diversification and a new store of wealth for institutional and individual investors, while bringing transparency and efficiency to the diamond supply chain. To invest brilliantly or learn more, visit www.diamondstandard.co.
SOURCE Diamond Standard