CEDEX, a blockchain-based trading platform for diamonds, said that ahead of its launch its diamond exchange-traded fund (ETF), it had secured more than 6,000 diamonds, worth some $50 million.
The diamonds will provide traders with a variety of investment options prior to the launch of the fund. Quoting a lack of transparency, liquidity and fungibility as the reasons why diamonds have not become a tradable asset before, CEDEX said it had overcome these obstacles by implementing their proprietary blockchain technology and algorithms.
The company said it had sourced its diamonds from diamond traders that had registering their stock on the exchange.
CEDEX co-founder and CEO, Saar Levi, said: "The vast inventory available combined with CEDEX unique technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially create the liquidity needed to jump-start our vision - transforming diamonds into a new asset class. Bridging the gap between existing financial markets and the diamond industry will fuel this untapped market from a $90 billion industry to an estimated $300-$400 billion."