London-listed financial technology provider TechFinancials (AIM: TECH), has announced the launch of CEDEX. The project, in which the company has a significant interest, previously announced that it is working on a diamonds exchange based on blockchain technology.
It appears that after several months of development the product is going live, albeit in beta. TechFinancials acquired a two percent stake last year with an option to buy another 90 percent. The company has three years to decide whether to exercise the option.
CEDEX is allowing its clients to trade diamonds as a financial asset class. The project raised significant funding even before launching its ICO earlier this year. Finance Magnates exclusively reported that the company got $20 million committed before the ICO launch.
The role of TechFinancials in the venture has been significant, with the company providing the infrastructure. The financial technology provider also participated in the CEDEX blockchain and smart contracts development.
Digital Diamonds Certificate
The CEDEX allows investors to trade in diamonds as a digitized asset class. The users can purchase Digital Diamond Certificates (DDCs). Those are backed by diamond holders who are willing to liquidate their assets.
Did COVID-19 Save the Forex Industry?Go to article >>
Over the past six months, CEDEX focused on tackling several issues in diamonds trading. The firm’s proprietary DEX algorithm is at the core of the diamond commodity exchange and has been developed in conjunction with TechFinancials.
CEDEX established business relations with diamond dealers in order for them to supply the initial diamond inventory on the CEDEX platform. As of the time of launch, it will comprise over 2000 diamonds in specific categories.
In order to ensure trust, the exchange also established a complex logistic business solution. The infrastructure supports the product launch, including setting up business relations with custodians, the GIA (Gemological Institute of America), and shipping partners.
The company states that it also has obtained legal approvals to offer the phase one product worldwide.
The launch of the beta is a major step forward in the mission of CEDEX to transform diamonds into an asset class, according to the CEO of CEDEX, Saar Levi.
“At CEDEX, we are committed to realizing our long-term vision in which both institutional and individual investors will be able to trade diamonds as one of the leading commodities,” he said.