Decentralised diamond exchange secures over $50 million worth of diamonds ahead of ETF launch

London-based diamond exchange CEDEX has secured more than 6,000 diamonds with an estimated value of $50 million to provide liquidity before the platform launches.

The CEDEX platform will use blockchain technology to verify peer-to-peer transactions between asset traders, solving the transparency issues of the diamond markets.

According to a press release shared with Coin Rivet, development of a diamond ETF is currently underway after the company raised $20 million in 2018.

The platform, which has been in beta mode since November, allows diamond holders to trade their diamonds at a “fair price” using the decentralised exchange (DEX).

“The DEX score is based on a diamond’s gemmological perfection, market price (based on 20 years of past and current parallel data), and the liquidity of each diamond category,” the press release states.

Co-founder and CEO, Saar Levi, is knowledgeable in the world of commodity trading after holding senior positions at Barclays and Lehman Brothers.

Levi said: “The vast inventory available combined with CEDEX’s unique technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially create the liquidity needed to jumpstart 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.”

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