Avalanche Network Welcomes Tokenized Diamonds

With a total value of approximately $1.2 trillion, the diamond industry is adopting blockchain and technology, with the Avalanche C-Chain hosting tokenized diamonds as the latest development in this transformation.

The Diamond Standard Fund, in collaboration with Oasis Pro Markets, has launched a token on the Avalanche C-Chain, providing investors with an avenue to gain ownership in the fund and exposure to diamonds. This partnership aims to democratize access to the diamond market, attracting a diverse range of investors, including institutional players like pension funds and endowments.

Cormac Kinney, CEO of the Diamond Standard Fund, highlighted the historical significance of this development. 

"For the first time in history, Diamond Standard and Oasis Pro are making an approximately $1.2 trillion natural resource accessible to investors via a more convenient, tradable fund," said Kinney.

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ERC-3643 Token Standard on Avalanche Blockchain

The Diamond Standard Fund token is built on the ERC-3643 token standard on the Avalanche blockchain. The protocol created a set of open-source smart contracts to allow tokenized assets to be issued, managed and transferred efficiently. 

To provide investors with transparency, the Diamond Standard Fund token is benchmarked to Bloomberg's Diamond Standard Index. 

The tokenization of diamonds fits within the broader trend of tokenizing real-world assets, where traditional assets such as gold, credit, and bonds appear in tokenized form on blockchains. Financial giants such as Franklin Templeton and HSBC have explored this space, while BlackRock, the world's largest asset manager, has launched tokenized funds backed by U.S. Treasuries and repurchase agreements on the Ethereum blockchain.