• Tokenized diamonds have seen a 300% increase in sales amid the banking crisis and stablecoin depegging.
• Diamond Standard is a blockchain company that enables investors to invest in diamonds with ease.
• Investors are seeking hard assets such as diamonds during times of market volatility and uncertainty.
Tokenized Diamond Market Booms Amid Crypto Banking Crisis
Amidst the chaos of last weekend’s banking collapses and a major stablecoin depegging, investors found solace in a surprising asset class: tokenized diamonds. As market volatility peaked, reports from CoinDesk show that sales in digitized diamonds skyrocketed by 300%, with Diamond Standard’s marketplace leading the charge.
Investors Seeking Hard Assets
Notably, per the CEO, most of those who bought these diamonds wanted out of stablecoins. He was quoted as saying that, „[Sales] of diamond coins and other products increased substantially since Friday on the back of Silicon Valley Bank and Signature Bank being shut down by regulators, USDC breaking its [dollar] peg and amid fears of contagion spreading to other banks and to digital assets.“ The popular stablecoin USDC regained its $1 peg price after regulators in the US assured that depositors in Silicon Valley Bank (SVB) could access their money.
Diamond Standard Unlocking Potential
The New York-based Diamond Standard is a blockchain company that describes itself as a technology developer, diamond market-maker, and „the producer of the world’s first diamond commodities.“ The company has tokenized the diamond market, enabling investors to invest in the mineral with ease. Its goal is to unlock „the potential of natural diamonds as a hard-asset for investors, like gold, silver, and platinum,“ said the company.
Who Are Investing?
The company’s clients include individuals, family offices, and smaller hedge funds; many have gold in their portfolio seeing „diamonds as something that is uncorrelated to other assets.“ Furthermore there may be further benefits due to small size making it easier to store or transport if needed compared to other hard assets such as gold or large quantities of cash which can be more difficult or expensive to move around quickly.
In conclusion tokenizing diamonds provides an alternative for investors who are looking for hard assets during times of economic uncertainty; allowing them flexibility when it comes to investing while also avoiding volatile markets due to correlations with other asset classes such as stocks or cryptocurrencies. The New York based Diamond Standard has enabled this through its platform which allows individuals and institutions alike access this asset class quickly easily securely at any time from anywhere around the world.