Blockchain-powered diamond exchange CEDEX and U2 Diamonds have teamed up to help issuers create a diamond exchange trading fund (ETF).
U2 Diamonds is a provider of a diamond pricing index. Its and CEDEX’s joint venture will set out to provide price point transparency and combining CEDEX’s technology with the Financial Conduct Authority-regulated indices of U2 Diamonds.
The two companies argue the combination will empower institutions to generate financial contracts and instruments with appropriately-priced underlying assets linked to them – making a diamond ETF achievable.
Saar Levi, CEO at CEDEX, said, “This is a unique and exciting opportunity for CEDEX. The partnership with U2 Diamonds unlocks an exciting new development, not only for the diamond market, but for the global financial market as a whole. An FCA-regulated diamond index coupled with the DEX creates the infrastructure for a new financial asset class. Not only will diamond holders be able to liquidate their assets at a fair price thanks to CEDEX’s price feed, but financial institutions will be able to trade diamonds at low carry cost and with a diversified risk profile that matches their trading strategies.”
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