Diamond Standard Launches Blockchain-Powered Token Backed by Real Gems

Now a company called Diamond Standard believes it has solved that problem by combining a hardware solution with a blockchain twist.

How does it work? Gold is often traded in standardized "Bars." Diamond Standard is aiming to do the same with diamonds.

Diamond Standard sells sets of diamonds in coin-sized discs or credit-card-shaped bars, with each grouping worth exactly as much as other groupings assembled the same way.

The Diamond Standard Coin and the Diamond Standard Bar are worth about $10,000 and $100,000 each, respectively.

"We created a diamond commodity by grouping sets of diamonds in a fair and transparent way," said Diamond Standard CEO Cormac Kinney of his encased gems.

Diamond Standard is betting that investors will find diamonds useful in a similar way once standardization and fungibility are introduced.

He expects more than one diamonds-only exchange-traded fund to launch with Diamond Standard bars as the underlying asset.

Diamond Standard seems to have passed due diligence by a few investors.

As Bitcarbon tokens are purchased on Diamond Standard's new exchange, the company purchases diamonds and creates the bars, using computer analysis to create groupings of precisely equal value.

Bitcarbon's base protocol is EOS although Diamond Standard reports that its wallet has multichain functionality so transactions can run across multiple major protocols.