Coinbase's Project Diamond Ready To Disrupt Traditional Finance With Blockchain Technology

Zinger Key Points
  • Project Diamond's first transaction demonstrates potential for instant settlement and operational efficiency in digital asset trading.
  • Coinbase's new platform aims to bridge the gap in global assets represented on blockchain, enhancing institutional adoption.

Crypto exchange Coinbase Global Inc. COIN on Tuesday announced the launch of Project Diamond, a new smart contract-powered platform aimed at institutions, designed to facilitate the creation, purchase and sale of digitally native assets.

The first transaction on Project Diamond was the issuance, distribution and maturity of a digital debt instrument, which served as a technical demonstration for the Financial Services Regulatory Authority, Coinbase stated in a blog.

This initial transaction, conducted on Nov. 10, was part of Coinbase's preparation to enter the Abu Dhabi Global Market (ADGM) RegLab sandbox, a regulatory framework designed to foster innovation in financial services.

Project Diamond leverages the Coinbase technology stack and Base BASE/USD, an Ethereum ETH/USD Layer-2 blockchain, to offer secure and compliant capital market activities.

Also Read: FTX Challenges IRS's $24B Tax Demand, Asserts Zero Liability In Court Filing

This integration aims to enhance operational efficiency in the financial sector by enabling near-instant settlement speeds and simplifying financial processes.

The platform's debut transaction involved a digital discount note denominated in USD Coin USDC/USD, showcasing the potential for faster and more efficient financial transactions.

Currently, less than 0.25% of global assets are represented on blockchain infrastructure, indicating a significant opportunity for efficiency gains and innovation in the financial sector, Coinbase stated, adding that Project Diamond's objective is to bridge this gap by enabling institutional use of advanced financial technology.

The platform is expected to support a wide range of digitally native assets, allowing institutions to directly manage these assets on the blockchain.

Read Next: El Salvador's 'Volcanic' Bitcoin Bond Approval Sets Stage To Build A Crypto City

Photo: Screenshot, Coinbase video

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Posted In: CryptocurrencyFintechNewsMarketsabu dhabiasset managementBlockchain TechnologyDigital AssetsProject DiamondSmart Contracts
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