Diamond Standard plans $25m coin offering – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password
BERMUDA | RSS

Diamond Standard plans $25m coin offering

Mail

Print

Tweet

First Prev 1 2 Next Last

A Bermudian-based company plans to sell coins that reflect value in diamonds in a $25 million offering scheduled for next Monday.

Diamond Standard Ltd aims to open up the diamond market to investors through the creation of the digital coin and the Diamond Standard Exchange.

The company was featured in the lead story of the Business and Finance section of the Wall Street Journal yesterday.

The Journal reported: “The aim is to create the equivalent of a standard gold bar — a new benchmark for an industry that has struggled with the challenges of valuing esoteric stones in an opaque market.

“New commodity products often struggle to attract a large number of investors. But if it is widely adopted, the coin would introduce a new way of trading diamonds and another source of demand for the stones, which have tumbled in price as jewellery consumption sags during the coronavirus pandemic.

“It could also enhance steps taken by industry participants to modernise in an era of clearer pricing and supply-chain traceability.”

The Journal quoted Adonis Pouroulis, founder of miner Petra Diamonds, as saying the coin “will have a huge impact”.

According to Diamond Standard's website, the Bermuda Monetary Authority is the offering regulator and its approval is pending.

In response to our questions, a spokesman for the BMA said last night: “All of the companies we regulate are on our website.” Diamond Standard is not among the five digital asset business licence holders listed by the BMA.

Diamond Standard plans to sell 5,000 coins each worth $5,000. The company will then bid on millions of diamonds and adjust its bids until it can buy a sample of about 50,000 to 60,000.

All diamonds will be purchased through the Diamond Standard Exchange, the world's first global diamond exchange.

The geological information about the diamonds purchased by the company will be put in a public database. From there, a computer program will select a comparable distribution of 11 or 12 to go into each coin.

“Every coin is approximately gemologically equivalent and intended to trade on the market at the same price, like a common gold coin,” Diamond Standard's website explains.

In addition to the diamonds, each coin contains a wireless computer chip that enables electronic auditing and instant authentication and also stores a blockchain token known as a BitCarbon Coin.

Cormac Kinney, the chief executive officer of Diamond Standard, told The Royal Gazette last November: “We are reinventing the diamond supply chain. This exchange in Bermuda will be the global exchange for centralised liquidity for diamonds.

“No diamond exchange in the world has a ‘bid and ask', and a clearing mechanism. That's what we have created.”

Diamond Standard has a website at https:// diamondstandard.co. The group is advertising for staff for its Bermuda operations at careers.diamondstandard.co

Store of value: a Diamond Standard Coin, as illustrated on the company's website
Fair exchange: Cormac Kinney, centre, CEO of Diamond Standard, seen at Bermuda Tech Week last year (File photograph by Duncan Hall)

Mail

Print

Tweet

You must be registered or signed-in to post comment or to vote.

Published September 23, 2020 at 8:00 am (Updated September 23, 2020 at 5:19 pm)

Diamond Standard plans $25m coin offering

What you
Need to
Know
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon