One of the three main diamond exchanges in the world is based in the Israeli city of Ramat Gan near Tel-Aviv. It is called Israel’s Diamond Exchange and has chosen to launch two cryptocurrencies that will both be partially backed by diamonds. The cryptocurrency called Carat will be available to investors and the general public for purchase in May. The second, dubbed Cut, should be available within the next few weeks, according to the exchange, and will be only available for transactions between traders. SECURITY TOKENS FUTURE OF CRYPTO A quarter of both Cut and Carat’s value will be backed by diamonds. The exchange is hoping to tackle the problem of the profitability of the diamond business stemming from the narrow profit margins between rough and polished gems, while providing transparency and efficiency behind transactions. The concept is not entirely new, and both gold and diamond-backed cryptocurrency make up a share of the growing number of cryptocurrencies, which as of January is around 1,400. Lex Sokolin, a partner and global director of FinTech strategy at Autonomous Research, said that creating a currency backed by diamonds shows the potential of the crypto economy. “Let’s start with the premise that all assets are going to be tokenized in the future. That means anything physical or digital that can be exchanged will have a digital representation of that object through a token… Tokenizing diamonds is no different, and highlights… Read full this story
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