CEDEX, a blockchain-based trading platform, have secured more than $50 million worth of diamonds. The platform intends to incorporate blockchain technology with machine learning to turn diamonds into a tradable asset.
Prior to the official launch, the platform announced they have already secured more than 6,000 diamonds worth over $50 million.
They claim their platform utilizes blockchain technology and a proprietary machine-learning algorithm to overcome many of the traditional hurdles seen in diamond trading: a lack of transparency, liquidity, and fungibility.
By reducing such problems, CEDEX says its platform will turn diamonds into a tradeable asset, similar to gold.
The exchange launched a beta version in November 2018 and claims to allow customers to trade in diamonds of different sizes and values with low carrying costs.
CEDEX Co-founder and CEO Saar Levi:
“The vast inventory available combined with CEDEX unique technology opens up for traditional and digital markets the opportunity to develop financial instruments that will initially create the liquidity needed to jump-start our vision – transforming diamonds into a new asset class.”
Levi describes his vision of how CEDEX could impact the diamond industry:
“Bridging the gap between existing financial markets and the diamond industry will fuel this untapped market from a $90 billion industry to an estimated $300-$400 billion.”