Tokenized Diamonds to Explore ‘Space of What’s Possible With Blockchain’

Tokenized Diamonds to Explore ‘Space of What’s Possible With Blockchain’
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Photo : Donald Bowers/Getty Images for Sotheby’sBusiness22:16 06.05.2018(updated 22:22 06.05.2018) Get short URL
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A Russian state fund is acting in line with a brand-new strategy aimed at drawing investments to the dense woods of Siberia.

The initiative which is set to be launched for the first time this month presupposes a digital token sale backed by diamonds that Russia’s Siberia abounds in. In particular, investors can buy “a diamond stake” for merely $10, The Financial Times reported.

“Asset-backed tokens, for diamonds or Venezuela’s petroleum, are exploring the conceptual space of what’s possible with blockchain,” said Lex Sokolin, whocj is in charge of fintech strategy for London-based Autonomous Research. “They are a rudimentary first step.”

The company issuing the token, diamond group Diamundi located in Singapore, said the value of its diamond stock would be audited on a monthly basis and held at the storage facilities of Israeli custodial group Malca-Amit, to guarantee the safety of the asset as well as accurate evaluation of the digital coin. In the meantime, the Russian fund is to source the diamonds from Siberian vast lands.

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The diamond sale is yet another venture to join a wealth of similar projects around the world, such as gold-backed token in Malaysia called HelloGold, and el Petro, the unique oil-backed cryptocurrency,  launched by the Venezuelan government in February and subsequently barred by the US.

Source.