Diamond Standard is beginning sales of the Diamond Standard Coin, which is describes as “the first and only regulator-approved diamond commodity.”
The initial $25 million offering consists of 5,000 coins priced at $5,000 each, according to a press release. The offering is enabled by the issuance of a regulatory license from the Bermuda Monetary Authority and a $15 million investment round led by Horizon Kinetics.
This offering will establish the permanent diamond content that must be contained in every Diamond Standard Coin. All diamonds will be purchased via transparent bidding and statistical sampling, and made public.
“Diamonds are the ultimate hard asset—a $1.2-trillion natural resource that was never before accessible to investors,” said Cormac Kinney, Founder and CEO of Diamond Standard. “Our breakthrough technology unlocks the potential for diamonds to take their place next to gold and silver as a secure, deliverable, and easily traded commodity.”
MAKING THE MARKET
Starting February 16, interested investors can purchase at diamondstandard.co/offering.
Following the initial offering, a public sample of approximately 50,000 diamonds will be purchased through a transparent bidding process on the Diamond Standard Exchange (DSE), the first-ever loose diamond market maker. The DSE bids on millions of varieties of diamonds using an automated market-making system, adjusting bids until a statistically valid sample of diamonds can be purchased.
The geological yield of this sample will be the permanent benchmark for all Diamond Standard Coins. Against this standard, anyone can verify the validity of any sample or Coin. Within approximately 28 days following the close of the initial offering, Diamond Standard will deliver the Coins to investors or their custodians, and they become transactable on digital exchanges.
After the initial sale, the market price of the Coin will be established by independent trading on various digital exchanges. Like gold, there will be a daily fix, used to settle the forthcoming futures on CME Globex and options on MIAX, and to report the net-asset-value for any securities or institutional funds.
BRILLIANT TECHNOLOGY
Each beautiful Coin is designed to have the same value, containing a statistically calibrated set of diamonds encased in transparent resin, and a military-grade wireless encryption chip. The chip stores a digital token which allows owners to instantly authenticate, audit and trade the Coin electronically, using blockchain technology.
When the Diamond Standard Coin is held by custodians (such as IDS Delaware, a subsidiary of Dillon Gage) in their vaults approved by the CME and other exchanges, owners will be able to list and trade the token on digital exchanges.
EARLY INVESTORS
Horizon Kinetics, an investment firm with $6 billion AUM, led a $15-million investment round for Diamond Standard just prior to the launch of the Coin’s initial public commodity offering.
“Horizon Kinetics seeks to find promising new assets early on,” said Alan Swimmer, Managing Director of Horizon Kinetics LLC. “This is an especially interesting opportunity: a potentially undervalued commodity with a long history of interest from investors, combined with the efficiency of a digital asset. We believe that diamonds are a new way to diversify and hedge against inflationary pressures in the marketplace.”
COMMITMENT TO TRANSPARENCY
Each Diamond Standard Coin is designed to have the same daily market value, and the Diamond Standard never changes over time. The statistically valid sample of diamonds (purchased through the DSE) and each Diamond Standard Coin are public for anyone to verify.
The Gemological Institute of America (GIA) and the International Gemological Institute (IGI) independently grade and inspect every diamond incorporated in Diamond Standard commodities. IGI, a subsidiary of Fosun, inspects and transports the diamonds to New York City from eight global intake locations, where the Coins are assembled inside a gemological lab. Diamond Standard’s internal auditor is Deloitte.
About Diamond Standard Co.
Diamond Standard Co. is the creator of the world’s first and only regulator-approved diamond commodity. By unlocking diamonds as a market-traded asset, Diamond Standard helps investors to access a natural resource currently worth $1.2 trillion – more than all the world’s silver and platinum combined. A breakthrough deliverable hard asset, the diamond commodity provides diversification and a new store of wealth for institutional and individual investors, while bringing transparency and efficiency to the diamond supply chain. To invest brilliantly or learn more, visit www.diamondstandard.co.