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Coinbase Asset Management launches Project Diamond, a platform for institutional investors to issue and trade blockchain-based digital debt instruments. 
Developed by Coinbase Asset Management and utilizing its Ethereum scaling network, Base, <a href="https://www.coinbase.com/blog/coinbase-and-coinbase-asset-management-announce-project-diamond-a-smart" data-type="link" data-id="https://www.coinbase.com/blog/coinbase-and-coinbase-asset-management-announce-project-diamond-a-smart" target="_blank" rel="noopener">Project Diamond</a> integrates several vital components. These include Coinbase Prime’s custody service, the exchange’s web3 crypto wallet, Circle’s <a href="https://crypto.news/price/usd-coin/" data-type="link" data-id="https://crypto.news/price/usd-coin/">USDC</a> stablecoin, and the layer-2 network Base. Together, these elements forge a capital marketplace that operates entirely on the blockchain. 
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 If you thought a blockchain having good BD n signing big names was impressive… Coinbase just set up so damn near EVERY big company can easily launch Digital Assets. Companies will trust a publicly traded company that they too share the public equities market <a href="https://t.co/TysXFNp49c" target="_blank">pic.twitter.com/TysXFNp49c</a>— Easy (@EasyEatsBodega) <a href="https://twitter.com/EasyEatsBodega/status/1734581034157588875?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">December 12, 2023</a>
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Gaining in-principle approval from the Financial Services Regulated Activity of Abu Dhabi Global Market, Project Diamond has already made strides by issuing and distributing its first debt instrument. This initial offering, a short-term discount note denominated in USDC stablecoin, was executed on <a href="https://crypto.news/tag/base/" data-type="link" data-id="https://crypto.news/tag/base/">Base</a>, showcasing the platform’s capabilities to Abu Dhabi regulators. 
 You might also like: <a href="https://crypto.news/k33-research-chainlink-is-best-asset-that-shows-growing-tokenization-for-rwa/"> K33 Research: Chainlink is best asset that shows growing tokenization for RWA </a> 
Currently, Project Diamond is accessible to registered institutional users outside the United States. This launch comes amid intense competition to integrate traditional financial assets like bonds and credit into blockchain systems. This process, known as the tokenization of real-world assets (<a href="https://crypto.news/the-future-of-ownership-belongs-to-asset-tokenization-opinion/" data-type="link" data-id="https://crypto.news/the-future-of-ownership-belongs-to-asset-tokenization-opinion/">RWAs</a>), is believed to enhance settlement speeds, reduce operational costs, and increase transparency. 
By 2030, the market for tokenized RWAs is projected to reach $10 trillion, according to asset management firm <a href="https://crypto.news/tag/21shares/" data-type="link" data-id="https://crypto.news/tag/21shares/">21.co</a>. Project Diamond distinguishes itself by creating digitally native assets directly on the blockchain, a significant evolution from merely creating token versions of existing instruments. 
Shaun Martinak, Head of Infrastructure Development at Coinbase Asset Management, emphasizes the advantage of this approach, noting the efficiency of creating and maturing assets entirely on-chain. Coinbase aims to bridge the gap in global assets not currently represented on blockchain infrastructure, which stands at less than 0.25%. 
 Read more: <a href="https://crypto.news/coinbase-sees-tokenization-as-important-part-of-crypto-market-in-next-2-years/"> Coinbase sees tokenization as important part of crypto market in next 2 years </a>

Coinbase’s Project Diamond: New blockchain debt instruments

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