CEDEX Has Secured $50 Million For the Launch of Diamonds ETF
CEDEX is a blockchain powered diamond trading platform which allows trading in diamonds and treats them as a commodity. Liquidity of these assets is made easier on the platform. CEDEX says that it has managed to secure a supply of over 6,000 diamonds considering the upcoming launch of an exchange-traded fund. These recently secured diamonds are worth more than $50 million.
CEDEX will be enabling it to deal in a variety of assets options before the diamond ETF gets launched. This ETF is currently in under the process and getting developed. As per CEDEX gave the information, the supply of the diamonds would depend on diamond holders who will be registering their stocks on the exchange for trade.
CEDEX said that previously diamonds could not be traded as other assets class like gold and silver because there were a few severe issues but using blockchain technology and a proprietary algorithm has helped the exchange to overcome several such problems. A few of these issues were liquidity, fungibility, and lack of transparency.
CEDEX wants to leverage on this exact drawback by creating a system which can make diamonds a tradeable asset class and will enable customers to enjoy liquidity in the market. CEDEX was launched in November last year. Now this exchange has taken a bold step and is trying to build something which would bring a new phase in the crypto trading market. The exchange will enable traders to deal in diamonds of different sizes and worth.
Apart from this diamond ETF, CEDEX also owns ERC-20 token, CEDEX Coin, which are compliant with each other.
CEDEX co-founder and CEO stated,
“The vast inventory available combined with CEDEX unique technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially create the liquidity needed to jump-start our vision – transforming diamonds into a new asset class.”
The CEO also said that finding the gap and trying to bridge it would be helpful for the market. The financial market has been kept at a distance from the diamond market for a long time, and bridging this gap will help to exploit this untapped market.