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Optimism for 2024 is strong, and many companies are developing crypto services to offer to institutions. Banks are joining the trend, with recent steps taken by Akbank and Garanti Bank drawing attention this week. Meanwhile, Coinbase is taking another major step for institutions. Project Diamond and what you need to know.
What is Project Diamond?
It is a smart contract-supported platform that facilitates institutions in creating, issuing, and selling their own crypto assets. Currently, less than 0.25% of the total global assets are represented on the blockchain infrastructure, which results in a failure to capture significant efficiency gains.
This is precisely the reason for the growing excitement in the RWA space over the past few months; companies like Chainlink and Coinbase are working on tokenizing real-world assets. Project Diamond, operating on the Base network, allows institutions to create and exchange assets, offering, for example, the infrastructure for a company that wants to issue blockchain-based debt securities without the headache.
For now, Project Diamond will serve corporate customers outside the United States. Project Diamond has received principle approval in Abu Dhabi and is operating in a regulated manner.
Impact on Cryptocurrencies
The project launched by Coinbase Asset Management and Coinbase could announce significant partnerships in the future. The excitement these partnerships generate could cause positive fluctuations in Coinbase (COIN) stock, as the Base network will not have its own native token.
The exchange, aiming to diversify its revenue streams, has taken significant steps in this direction. The income generated by the Base network could reach significant levels within the total revenue in the future. At the same time, the Base, an Ethereum layer2 solution, contributes to the Ethereum network as it grows.
The tokenization of real-world assets has the potential to create significant demand, especially for smart contract platforms. The initiation of RWA initiatives by networks competing with Ethereum and the facilitation of corporate tasks could increase crypto network activities. With growing interest, an increase in the value of assets on the network, and token prices turning upwards wouldn’t be surprising.
