New Cryptocurrency Creates $20M Diamond Reserve

RAPAPORT... Singapore-based D1 Mint has agreed to buy $20 million worthof diamonds to back its new cryptocurrency coin, the company said last week. The 1,500 investment-grade diamonds were manufactured byHong Kong-headquartered KGK Diamonds, and sourced from Russian miner Alrosa. Thestones will go to the Gemological Institute of America (GIA) in New York forgrading, laser-etching and packaging, before being secured in vaults inSingapore and Switzerland. Coin holders can select specific stones from the reserve atany time and convert their tokens into diamonds at a fixed price, determined bythe company's algorithm.Consequently, D1Coins provide a direct exposure to the price of diamonds, opening a new assetclass to investors globally, the company explained. "We believe that the approach taken by D1 will succeed inmaking natural diamonds an investment asset class attractive to variousinvestor groups, drive higher demand for natural diamonds and support furthergrowth of the diamond industry in Russia," said Alexei Chekunkov, a member ofthe international advisory committee for D1, as well as CEO of the Far EastDevelopment Fund and a member of Alrosa's board of directors.