Coinbase, a leader in the global cryptocurrency market, has launched a cutting-edge platform named ‘Project Diamond’, designed specifically for traditional financial (TradFi) institutions. This initiative, powered by Coinbase’s layer-2 blockchain solution ‘Base’, marks a significant stride in bringing institutional investors to the blockchain space.
Project Diamond, developed and managed by Coinbase Asset Management, leverages Coinbase Prime’s custody service, the Web3 crypto wallet, and Circle’s USDC stablecoin, amalgamated with Base. This innovative platform allows institutions to issue and trade digitally native debt instruments, fostering a seamless and efficient digital-first capital market.
The platform has been granted in-principle approval from the Financial Services Regulated Activity (FSRA) of Abu Dhabi Global Market (ADGM) to enter its RegLab sandbox, a testbed for financial innovations. It has already showcased its potential by issuing and distributing its first digital debt instrument on Base. This instrument, a short-term discount note denominated in USDC stablecoin, was successfully transacted within a single application at near-instant settlement speed.
Base, an Ethereum-based Layer 2 (L2) network, is designed to be a secure, low-cost, and developer-friendly platform for building decentralized applications (dApps). It is built on the Ethereum blockchain, leveraging its security and decentralization while addressing scalability issues like low throughput and high gas fees. Base aims to make web3 more accessible to developers, offering APIs for gasless transactions and account abstraction for dApps, among other features.
Currently, Base is available as a testnet, with plans to transition to a more decentralized Stage 1 rollup in 2023 and a Stage 2 rollup in 2024. This move is part of Coinbase’s strategy to create one of the best environments for on-chain development, combining their decade-long experience in crypto products with blockchain technologies.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
