- August 8, 2018
- Posted by: Mor Hazen
- Category: carats blog posts
In finalizing their MOU, the heads of the Carats.io and IDEX emphasized that together they are uniquely positioned to energize and engage with the international diamond sector, creating solutions that previously were not available.
LONDON/ANTWERP: AUGUST 7, 2018 – Fintech startup Carats.io and online diamond-trading platform IDEX – International Diamond Exchange, have announced that they have signed a Memorandum of Understanding (MOU), according to which the two will cooperate in the areas of data analysis and the development of new financial vehicles for both the diamond industry and general public. These will be based on Carats.io’s Diamond Financial index (DFX) and its CARAT coin, which is the world’s first cryptocurrency fully backed by real diamonds.
As part of the MOU, the two parties agreed that IDEX will serve as an escrow company, supporting Carats.io in its acquisition of diamonds to back the digital CARAT coins that it issues, providing diamond-buying and logistical services from sourcing to vaulting. The diamonds will be acquired from international companies operating on its platform in jurisdictions where cryptocurrency-based diamond trading is sanctioned by law, up to U.S.$120 million worth in the initial stage of the agreement.
In finalizing the MOU, the heads of the Carats.io and IDEX emphasized that together they are uniquely positioned to energize and engage with the international diamond sector. IDEX brings to the table a B2B diamond-trading platform with more than 1,500 suppliers and 7,000 professional traders from across the globe, an online pool of 750,000 diamonds, and a wealth of financial data gleaned from up-to-the-minute records of actual transactions. The value of Carats.io’s cryptocurrency is linked to daily movements in the DFX index, which is generated without human involvement by a sophisticated proprietary algorithm developed by the company, fed by real-time market data. The diamonds held by the Carats.io to back the CARAT coin, as well as the algorithm, are independently audited by the international accounting firm Ernest & Young.
“We are delighted to announce our cooperation with IDEX,” said Eli Avidar President of Carats.io. “Its worldwide reach, excellent international position, and its exceptional strength in Antwerp will enhance our business operations, especially since Carats.io is UK registered. Carats.io was built to bridge the traditional economy with the digital economy, and, in doing so, provide access to funding and investors that have not been part of the diamond and Jewelry business.”
“We are pleased to be cooperating with Carats.io, and to be able take advantage, on behalf of the diamond industry, of the synergies created by our two organizations working together,” said Ehud D. Cohen, IDEX’s Chairman. “IDEX-International Diamond Exchange represents the new economic and technological order, which not only has changed the diamond industry’s business environment since the year 2000, but also is the place from which new solutions can be found. And it is innovating and delivering those solutions that we are committed to doing.”
Carats.io is a fintech startup issuing the first cryptocurrency backed by diamonds, thereby establishing the first-ever financial market for diamonds. The company uses state-of-the-art big data and blockchain technologies to tokenize diamonds, and has created a sophisticated proprietary algorithm that compares individual diamond grades to daily market conditions, via its Diamond Financial Index (DFX). This algorithm has so far been deployed to price over $1 billion worth of diamonds. The company is audited by international accounting firm Ernst & Young.
IDEX – International Diamond Exchange – is the leading online diamond-trading platform for professional diamond traders located in the primary diamond-trading centers, such as Antwerp, Mumbai, Ramat Gan and New York. It features live online supply-listings with dynamic pricing features and a proprietary and unique online transaction clearing function (GDTTM). IDEX’s reach into the professional diamond trade is comprehensive, more than 1,500 suppliers and 7,000 professional traders use the system regularly. More more than 75% of the supply chain’s inventory is featured on its system.