Diamonds have entered the blockchain era with the introduction of a new tokenized fund on the Avalanche network

Diamonds have entered the blockchain era with the introduction of a new tokenized fund on the Avalanche network. This security token, backed by the Diamond Standard Fund, is now available for trading on the regulated Oasis Pro Markets platform, making it accessible to institutional investors like pension funds and endowments.

According to the CEO of Diamond Standard, this offering marks a significant milestone by providing investors with a more convenient and tradable fund, thereby opening up access to the approximately $1.2 trillion natural resource represented by diamonds.

The creation of this token on the Avalanche C-Chain by the Oasis Pro platform represents a groundbreaking development in the tokenization of traditional assets. As real-world asset (RWA) tokenization gains traction, with assets like gold and bonds being tokenized on blockchains, the inclusion of diamonds in this trend highlights the increasing interest in alternative investment options.

Structured to mirror Bloomberg’s Diamond Standard Index (DIAMINDX), the Diamond Standard Fund offers accessibility to pension funds and endowments, as well as eligibility for U.S. retirement accounts like IRAs. Utilizing the ERC-3643 token standard, which enables the issuance and management of permissioned tokens tailored for tokenized assets, this tokenized fund brings transparency and efficiency to the previously opaque diamond market.

John Wu, president of Ava Labs, the organization behind the Avalanche ecosystem, emphasized the significance of tokenizing diamonds on the blockchain, highlighting the benefits of blockchain technology in bringing transparency and efficiency to traditionally inaccessible asset classes.