IDEX was among the first jewelry industry news outlets to cover IGI’s unprecedented partnership with Diamond Standard, an entity which has received regulatory approval to offer the world’s only market traded diamond commodity – the Diamond Standard Coin.
Diamond Standard selected IGI to receive, inspect and sort all diamonds used in the commodities in eight global IGI locations, and to assemble the high-tech coins in IGI’s labs.
The World’s First Fungible Diamond Commodity
The highly anticipated $25 million initial offering was launched on February 16, enabling institutional and individual investors to trade and hold a fungible diamond commodity for the first time. Diamond Standard Coins each have the same market value, and are being listed on commodity exchanges. The market price is determined by buyers and sellers, just like gold. Diamond Standard founder and CEO Cormac Kinney expressed excitement about the relationship with IGI:
IGI’s expertise, global footprint, flexibility, and long-standing reputation of excellence made them a key partner in our pursuit to develop a regulator-approved diamond commodity. We are excited to begin a long relationship, together delivering a revolutionary new asset to the market.
A Monumental Step Forward
IGI will receive, inspect and validate the authenticity of over 50,000 natural diamonds acquired through the Diamond Standard Exchange using automated market making and transparent bidding. IGI will assemble the diamonds, sealing them into a transparent coin with a sophisticated wireless computer chip. Specialized equipment will be used to analyze and enroll the Diamond Standard Coin onto a blockchain, creating a regulator-licensed digital token that is used to transact the coins, which will be initially priced at $5,000 each.
Avi Levy, president of IGI North America, commented:
This partnership is a monumental step forward for the diamond industry. We are uniquely positioned to support global investor demand for the diamond commodities, and are delighted to collaborate with Diamond Standard.
Mobile Trading App
Per the Diamond Standards website, a wireless encryption chip inside the Diamond Standard Coin enables authentication, remote audit, and instant transactions. The chip stores a blockchain token. When you trade the token on a digital exchange you trade the coin. The chip is already compatible with Android smartphones, and will be compatible with iPhones in the near future.