CEDEX secured the supply of more than 6,000 diamonds ahead of its launch of a diamond exchange-traded fund (ETF). Blockchain Exchange Manages to raise a whopping 50 million in diamonds for ETF Launch.
CEDEX currently has an EFT in development. The diamonds over $50 million will provide traders with a variety of investment options. Also, the firm told a media source that the supply comes from diamond holders registering their stock on the exchange for trading.
Diamonds had previously been prevented from becoming a tradable asset class like gold, due to:
- lack of transparency
Blockchain tech and a proprietary algorithm have been utilized by CEDEX to overcome these hurdles.
The company aims to enable customers to trade on its inventory and generate liquidity in the market. CEDEX said its mission is to turn diamonds into a tradeable asset class.
Blockchain Exchange Manages to raise a whopping 50 million in diamonds for ETF Launch. Launched in beta in November 2018, the exchange will use tokens to allow customers to trade in diamonds of different sizes. Also, values with “low” carrying the cost.
The platform’s “DEX” algorithm gauges the value of diamonds based on their characteristics. Also, shows sellers a DEX score and estimated market price, according to the firm’s website. It has its own ERC-20 token too, CEDEX Coin. Although CEDEX says, it is compliant and can be used for trading and investment on the exchange.
Saar Levi, CEDEX co-founder, and CEO 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.”
In order to offer a software solution that will allow integration of its ETF products, the other firm added that it is currently in talks with commodity brokers, exchanges, banks and ETF issuers.
However, to develop its platform, CEDEX said it raised $20 million in March 2018.