At the time when banks were collapsing last weekend and a major stablecoin was delisted, there was a 300% increase in sales of tokenized diamonds.
Investors looking for safe havens turned to digitized diamonds amid high market volatility as at least three banks collapsed. United States of america, coindesk informed of He diamond standard After the closure of these banks, its market saw a boom.
Cormac Kinney, founder and CEO of Diamond Standard, said trading volume for tokenized diamonds increased by nearly 300% over the past weekend. This jump in volume was so great that the company’s marketplace, Diamond Standard Spot Marketremained open continuously.
Notably, according to the CEO, most of those who bought these diamonds wanted to get out. stable coins, He was quoted as saying,
,[Sales] The number of diamond coins and other products has increased significantly since Friday due to the closure by regulators of Silicon Valley Bank and Signature Bank, USDC in its [dollar] Peg and amid fears of spillover to other banks and digital assets.”
popular stablecoin usdc got it back its $1 peg price After assurances from regulators in the US that depositors in Silicon Valley Bank (SVB) can access their money. USDC is the fifth largest coin and the second largest stablecoin by market capitalization with $37bn, while Tether (USDT) With $76bn in market capitalization, it ranks third among all cryptos and first among stablecoins.
New York-based Diamond Standard is a blockchain company that describes itself as a technology developer, diamond market-maker, and “the world’s first manufacturer of diamond objects”. It tokenized the diamond market, allowing investors to invest in the mineral.
“Our goal is to unlock the potential of natural diamonds as a hard-asset for investors, such as Sleepsilver, and platinum,” the company said, adding that it works with regulators, auditors and financial sponsors to do so. And having these investment options is especially relevant in times of market volatility and uncertainty. When investors focus on hard assets.to shield them.
Furthermore, the CEO added that most clients working with the company aim to hold the asset for the long term, viewing it as an opportunity for portfolio diversification and hedging.
The company’s clients include individuals, family offices and small hedge funds, and many of them have gold in their portfolios, “viewing diamonds as something that doesn’t correlate with other assets.” Besides, there is arguably room for the diamond price to rise and make money for investors.
Interestingly, Diamond Standard is still primarily banking signature bank, while some have business deals with others, the report noted. Kinney argued that Signature is currently “the most secure bank in the world”, noting that the newly established interim entity will be run by the bank for some time. Federal Deposit Insurance Corporation ,FDIC,
As a reminder, the turmoil in the banking industry has so far led to three major bank failures in the US: silvergateSVB, and Signature Bank.
FDIC took control Signed two days after regulators Closed SVB’s massive fall last weekend affected billions of deposits. Signature had $110.36 billion in assets and $88.59 billion in deposits at the end of 2022, according to New York State department of financial services,
Signature’s collapse was the third largest failure in US banking history, the shutdown of Silicon Valley Bank was the second and the first Washington Mutualwhich collapsed during the 2008 financial crisis.
Along with troubled Silvergate, Signature Bank was known as one of the biggest crypto-friendly banks in the US.
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