Coinbase Announces Institutional "Diamond" Platform

Coinbase has introduced a new platform for institutions only. Named "Project Diamond," the smart contract-powered platform built by Coinbase and Coinbase Asset Management allows "seasoned investors" to create, manage, buy, and sell various digitally native assets directly on the blockchain.

Leveraging the Coinbase technology stack and Base, the project is in preparation to enter the Abu Dhabi Global Market (ADGM) RegLab sandbox. The first digital debt instrument on Project Diamond was issued on 10 November 10 to demonstrate its feasibility to the Financial Services Regulatory Authority.

"Today, less than 0.25% of total global assets are represented on blockchain infrastructure, leaving massive efficiency gains uncaptured," Coinbase stated in an announcement on Tuesday.

Through Project Diamond, Coinbase aims to close this gap. Its initial discount note, denominated in USDC, was transacted within a single application at near-instant settlement speed on Base.

"The transaction marks a powerful upgrade to operational efficiency; a simplification of an important financial process that further unlocks institutional participation in the cryptoeconomy," Coinbase added.

Coinbase's stock price is up over 315% year to date, even outperforming Bitcoin. However, Cathie Wood's ARK Invest has been on a Coinbase stock selling spree over the past few weeks. On Friday, ARK Invest sold another 335,860 shares - its largest sale since July, when it sold 480,000 shares worth $50.5 million at the time.