CEDEX, the blockchain-based online exchange that aims to facilitate trading of diamonds as a financial asset class, has gone live in Beta mode, TechFinancials, the company that has invested in and helped develop the technology platform, said in a statement released yesterday. This will allow investors to securely and easily trade in digitized diamonds, as well as liquidate them when necessary, the statement added.

TechFinancials has a 2 percent interest and an option to acquire a further 90 per cent of Cedex Holdings Ltd, the holding company for the CEDEX blockchain-based online exchange for diamonds. It played a major role in the launch of CEDEX as the main provider of the infrastructure, blockchain and smart contract development on which the CEDEX platform is built.

CEDEX uses the innovative DEX proprietary algorithm and blockchain technology. It has overcome the three main obstacles that have prevented diamonds from becoming a tradable asset class: lack of transparency, liquidity and standardization so that diamonds can be traded in the form of DDC – Digital Diamond Certificates (DDC).

The launch comes after six months of preparatory work focused on:

• Developing the proprietary DEX algorithm and building the diamond commodity exchange in conjunction with TechFinancials;
• Establishing business relations with diamond dealers in order for them to supply the initial diamond inventory on the CEDEX platform, which will comprise over 2,000 diamonds in specific categories, at the time of the launch;
• Constructing the complex logistic business solution to support the product launch, including setting up business relations with custodians, GIA (Gemological Institute of America) and shipping partners;
• Obtaining the legal approval to offer the phase one product worldwide.

Asaf Lahav, Chief Executive Officer of TechFinancials commented: “We are delighted to have played a pivotal part in the launch of the first blockchain-based diamond exchange in the world. This milestone achievement is testament to the innovative capabilities of both CEDEX and TechFinancials to build a new, ground breaking platform and we look forward to updating the market on its progress in due course.”

Saar Levi, Chief Executive Officer of CEDEX stated: “This is a major step forward in our exciting journey to transform diamonds into an asset class. 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.”