According to CoinDesk, the security token backed by the Diamond Standard Fund is now listed on the regulated Oasis Pro Markets, making it eligible for IRAs and available for institutional investors such as pension funds and endowments. The listing allows investors to access the $1.2 trillion natural resource through a more convenient, tradable fund, according to Cormac Kinney, founder and CEO of Diamond Standard.
Crypto securities trading platform Oasis Pro created a token on the Avalanche C-Chain that represents a stake in the Diamond Standard Fund, a product sponsored by Diamond Standard Commodities and Horizon Kinetics. The new offering comes as real-world asset (RWA) tokenization, which involves placing traditional assets like gold, credit, and bonds on blockchains in the form of a token, has gained popularity over the past year. Global traditional finance giants such as Franklin Templeton and HSBC have participated in tokenization-related pilot projects or started offering services.
The Diamond Standard Fund, benchmarked to Bloomberg's Diamond Standard Index (DIAMINDX), is structured to be accessible to pension funds and endowments, as well as being eligible for U.S. retirement accounts known as IRAs. The token adopted the ERC-3643 token standard, an open-source suite of smart contracts that allows the issuance, management, and transfer of permissioned tokens tailored for tokenized assets. John Wu, president of Ava Labs, the ecosystem development organization behind Avalanche, said that tokenizing diamonds and offering exposure through a fund structure on Avalanche is a great example of how blockchain can bring transparency and efficiency to an asset class that was previously opaque and inaccessible for institutions.