The initiative which is set to be launched for the first time this month presupposes a digital token sale backed by diamonds that Russia’s Siberia abounds in. In particular, investors can buy "a diamond stake" for merely $10, The Financial Times reported.
"Asset-backed tokens, for diamonds or Venezuela’s petroleum, are exploring the conceptual space of what’s possible with blockchain," said Lex Sokolin, whocj is in charge of fintech strategy for London-based Autonomous Research. "They are a rudimentary first step."
The company issuing the token, diamond group Diamundi located in Singapore, said the value of its diamond stock would be audited on a monthly basis and held at the storage facilities of Israeli custodial group Malca-Amit, to guarantee the safety of the asset as well as accurate evaluation of the digital coin. In the meantime, the Russian fund is to source the diamonds from Siberian vast lands.
The diamond sale is yet another venture to join a wealth of similar projects around the world, such as gold-backed token in Malaysia called HelloGold, and el Petro, the unique oil-backed cryptocurrency, launched by the Venezuelan government in February and subsequently barred by the US.