Regulated Offering
Regulated Offering
Diamond Standard Bar Regulated Offering
Diamond Commodity Product with Tokenized Vault Receipt Offering
Every Diamond Standard Bar (the “Bar”) is equal. The Bar is a physical commodity containing an optimized set of natural diamonds, and a wireless chip to issue a vault receipt for digital transactions.
The Bars enable investments in natural diamonds that can be traded on a marketplace. They are “Good for Delivery” to settle CFTC-regulated futures and options which are in development.
We sell Bars at the market price, then bid for large samples of diamonds via a global exchange, to then assemble and deliver the physical Bars to buyers. Funds are held on a segregated account until the diamonds are inspected by independent gem labs before assembly.
We will deliver your Diamond Standard Bar to your address in the US, or you can use an approved custodian like Brinks. Custodian clients receive a digital vault receipt used to transact (sell, lend) their Bars at spot.diamondstandard.co.
This Continuous Offering is for new Bars which conform to the Diamond Standard — a public index of the geological content that was established by a regulator supervised initial offering in 2021.
How are Diamond Standard Bars Equivalent?
To make Diamond Standard Bars equivalent, the diamonds embedded inside are purchased through a statistical sampling process, by automatically bidding on global diamond inventories, to purchase a statistically valid sample of thousands of natural diamonds from around the world. By spending an equivalent amount all along the diamond yield curve, diamonds purchased for this Offering will establish the permanent standard, and the sample will include combinations of all primary diamond geological characteristics, such as carat weight, color, and clarity, for natural white diamonds between between 0.76 carats to 2.05 carats. The bidding is transparent to all vendors on the exchange. Diamond Standard may also purchase diamonds directly from consumers, and then have them independently graded.
The gemological details of every diamond acquired through this bidding process are made permanently public, and the diamonds are distributed into Bars fairly by an optimization system. The optimizer ensures that every Bar contains an equivalent share of gemological scarcity. Every Bar approximates the natural yield curve of the range of diamonds in the Earth’s crust, which does not change over time.
Diamonds are purchased from hundreds of competing vendors through the Diamond Standard Exchange. It uses automated market making and transparent bidding, to force consistent price discovery mechanism for all diamonds in the range. To maintain the systems and cover the cost of delivering the diamonds globally, the Diamond Standard Exchange charges a 3.5% fee.
All diamonds contained in a Diamond Standard Bar are independently graded by gemological labs, and all larger diamonds are reinspected by a competing lab. Grading and confirmation services are provided by the GIA (Gemological Institute of America) and the IGI (International Gemological Institute). Diamond Standard Bars are assembled inside IGI labs, and optically audited using special equipment.
How are Diamond Standard Bars Equivalent?
To make Diamond Standard Bars equivalent, the diamonds embedded inside are purchased through a statistical sampling process, by automatically bidding on global diamond inventories, to purchase a statistically valid sample of thousands of natural diamonds from around the world. Every purchase must comprise a statistically valid sample of the primary diamond characteristics, such as carat weight, color, and clarity, for natural white diamonds between 0.76 carats to 2.05 carats, and match the statistical characteristics of the original IPO sample. The bidding is transparent to all vendors. Diamond Standard may also purchase diamonds directly from consumers, and then have them independently graded.
The gemological details of every diamond acquired through this bidding process is made permanently public, and the diamonds are distributed into Bars fairly by an optimization system. The optimizer ensures that each Bar contains an equivalent share of gemological scarcity. Every Bar approximates the natural yield curve of the range of diamonds in the Earth’s crust, which does not change over time.
Diamonds are purchased from hundreds of competing vendors through the Diamond Standard Exchange. It uses automated market making and transparent bidding, to force a consistent price discovery mechanism for all diamonds in the range. To maintain the systems and cover the cost of delivering the diamonds globally, the Diamond Standard Exchange charges a 3.5% fee.
All diamonds contained in a Diamond Standard Bar are independently graded by gemological labs, and all larger diamonds are reinspected by a competing lab. Grading and confirmation services are provided by the GIA (Gemological Institute of America) and the IGI (International Gemological Institute). Diamond Standard Bars are reinspected by the IGI labs, and optically audited.
Transparency
This offering is made under regulatory supervision, and Diamond Standard is internally audited by Deloitte.
The contents of every Bar, and the independent gemological lab grading reports for every diamond, are permanently public and recorded on a blockchain.
The complete and statistically valid sample of diamonds, from which every Diamond Standard Bar was produced, is public and recorded on a blockchain.
This data proves that each sample of diamonds, and each Bar, contains a statistically consistent quantity of gemological material, which meets or exceeds the permanent “Diamond Standard” established by the initial public offering.
Visit diamondstandard.co/authenticate to view the validation data described above.
Pricing
The selling price of the Diamond Standard Bar is not set by Diamond Standard. It is established using third- party data, or by buyers and sellers in the secondary market through exchange trading—just like gold. Diamond Standard sells new Bars at the market- determined fix published daily by Bloomberg.
Bars are not transactable until they are produced and delivered to the custodian. During this time, the value may go up or down.
Trading
Bars held in custody administered by DS Admin Trust can be traded online since they are immediately deliverable to buyers.
Visit the Diamond Standard P2P marketplace atspot.diamondstandard.co to see recent trading activity, or to accept a current bid, or to offer your Bar at a particular ask price.
How is this a commodity?
The Diamond Standard Bar is physical and designed to be fungible. The production of the Bar and the offering is supervised by the Bermuda Monetary Authority and internally audited by Deloitte. Every Bar is calibrated to be geologically equivalent and intended to trade on the market at the same price, just like a standardized gold bar. The Bar is always delivered to the owner or their custodian. You are not purchasing a share of a pool or a futures contract, you are purchasing a real commodity containing a set of diamonds that is statistically similar to that in others.
By containing a representative sample, the Diamond Standard Bar reflects the underlying range of diamonds. The demand for the Bar creates demand for all of those diamonds, impacting the value.
How is this a token?
Under the optimized set of diamonds, each Diamond Standard Bar contains a wireless computer chip. This chip enables real-time electronic auditing and instant authentication, and also stores an electronic document of title in the form of a blockchain token—a BCB (Bitcarbon Bar). This vault receipt is issued to the owner when the Bar is received by an approved custodian. It is a tradable vault receipt, entitling the holder to take delivery of that specific Diamond Standard Bar.
The holder of the token is the legal owner of the Bar. If you sell your token, you sell the ownership of the Bar. If you encumber the token, by taking a loan for example, you encumber the Bar, with a lien recorded on a public blockchain. The unencumbered token owner can always take possession of the specific Bar by contacting the custody administrator. If the ownership has changed, the recipient will be subject to local KYC and AML requirements.
How is the token minted?
There is no stockpile of diamonds or tokens. Every time it creates Bars, Diamond Standard must purchase an audited, statistically valid sample of natural diamonds, using transparent bidding on the Diamond Standard Exchange. Every future sample must match the sample acquired for the Initial Offering. The detailed characteristics of every diamond and the aggregate characteristics of every sample are always public, for anyone to verify. After the sample is complete, the diamonds are divided into equivalent sets by an optimizer which are sealed into individual Bars.
Inside an independent gemological lab, each Bar is analyzed by an enrollment station, to optically and electronically inspect the Bar, the chip, and the diamonds. If all aspects of the Bar are verified, in one simultaneous moment, the Bar is optically analyzed and the token is electronically burned into the chip and enrolled on the public blockchain — or “Minted”. Tokens can only be minted through an enrollment station, upon the presentation of a Bar containing a valid set of diamonds, proven to have come from a statistically valid sample acquired through transparent bidding.
Only once the Bar is received by the owner’s approved custodian, is the token issued and transactable. There is only ever one token per commodity. No BCB tokens are issued to our founders, team, advisors, or anyone else. Owners of Diamond Standard Bars always own 100% of the existing BCB tokens.
How do I use the tokenized vault receipt (BCB Token)?
Each Diamond Standard Bar contains a regulated vault receipt token that can be issued to the owner after their Bar has been delivered to an authorized custodian. Custody is administered by DS Admin Trust, at Brinks, Loomis, and Malca-Amit precious metals vaults. All Bars are held in trust; they can be transacted between and delivered to the clients of the trust. A Hedera HTS wallet address is provided to you when you purchase Bars via app.diamondstandard.co.
To sell or lend your Bar, you simply transact the token. Whoever holds the token, owns the Bar.
When you purchase a Bar, if you do not intend to transact it, you can leave the token unactivated. Otherwise, activate your token atapp.diamondstandard.co to transact your Bar at the Diamond Standard P2P Marketplace at spot.diamondstandard.co.
DS Admin Trust charges an annual custody fee of $240 per year. The Diamond Standard P2P Marketplace charges no transaction fees, however, there may be costs if you use Ethereum gas.
Can I lease my Bar out for income?
Diamond Standard Bar owners can lease out their Bars to earn income. Diamond Standard Carats are an asset-backed alternative to stablecoins, equal to 1/50,000 of a Bar. To create Carats on-demand for new users, DSAM LLC leases Bars from private owners for 30-day periods—the title remains in your name, and the Bars never leave the vault. With our Commodity Lease Program, you can earn a risk-free return on your assets.
Visit https://www.diamondstandard.co/lease for more information. Carats tokens and the Commodity Lease Program are not regulated by the Bermuda Monetary Authority.What if my BCB token keys are lost or stolen?
If you take delivery of your token and lose your key, as long as ownership is not disputed, you can recover full use. Contacthello@diamondstandard.co for assistance.
In-Hand Transactions: When you take possession of your Diamond Standard Bar, you cannot list it on an exchange, lend it via your system, or use your Bar for blockchain transactions, such as smart contracts. Because there’s no proof-of-asset or guarantee of delivery for your counterparties.
But you can still sell your Diamond Standard Bar to a buyer face-to-face. Anyone can use the Diamond Standard mobile app (coming soon), anywhere in the world, to authenticate a Diamond Standard Bar, and you can trade at the market price or any agreed value.
Regulatory Oversight, and KYC/AML
Diamond Standard is internally audited by Deloitte, with regulatory oversight and a license from the Bermuda Monetary Authority. The Diamond Standard technology and processes are designed to be regulatory-compliant, acceptable for institutional investors, and capable of supporting securities offerings, such as CFTC regulated futures and options, and SEC-regulated ETF funds and options.
Purchasers do not need to be accredited investors, but must agree to the Terms of Sale agreement, and submit information for a KYC/AML review, and be approved upon such review.
Delivery
At the time of purchase, you must indicate whether we should physically deliver the Bar to a custodian or to you personally. In order to transact your Bar on our platform, the custody must be administered by DS Admin Trust, subject to the Custody Addendum of the Terms of Sale.
Within 3 days of the completion of the purchase of the Bar, the status of your order will be published on our website, accessible through your login. The Diamond Standard Bar will be assembled within approximately 30 days after the date of purchase, to allow for the purchase, inspection/ grading, settlement and assembly of diamonds. Upon assembly, inspection and enrollment, your Bar will be published on the public blockchain, and we will deliver the Bar as you instructed.
If you choose to deliver the Diamond Standard Bar to the custodian managed by DS Admin Trust, the Token is eligible to be activated, enabling use of your BCB Token on our platform. Otherwise, the Diamond Standard Commodity will be delivered to you or your own custodian, which you may store or trade privately. The BCB token is not transactable until the Diamond Standard Bar is delivered to an approved physical custodian, and the market price may go up or down in the meantime.
At this time, Diamond Standard Bars can be delivered to USA addresses and approved custodians only. In the future, production and delivery will be offered in more countries. We do not deliver to P.O. Boxes, and if you use a credit or debit card, we only deliver to an approved custodian, or to the address provided by the financial institution that issued your card. Signature with positive identification is required, and other restrictions may be imposed by the carrier, which are beyond the control of Diamond Standard. Purchases by ACH are delivered after the ACH reversal period.
For deliveries to all US states where it is required, sales tax will be collected. For delivery to a Delaware custodian, there is no state sales tax.
How to purchase?
Visit app.diamondstandard.co to create an account, purchase Diamond Standard Bars, select delivery options, and complete KYC/AML forms.
Fees
After delivery of the Bar, Diamond Standard charges no fees to authenticate, buy, sell, exchange, trade, or transfer your Bar. Diamond Standard charges no fees for use of the mobile app, web app, integrated audit, proof of asset or API services. There are fees for custody, and third parties may charge fees for trading or other optional services.
Other
This offering does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation of any security. Furthermore, nothing in this Offering or website is intended to provide tax, legal, or investment advice and nothing in this website should be construed as a recommendation to buy, sell, or hold any investment or security or to engage in any investment strategy or transaction. Diamond Standard does not represent that the products or services discussed in this Offering or website are suitable for any particular investor. You are solely responsible for determining whether any investment, investment strategy, or related transaction is appropriate for you based on your personal objectives, financial circumstances and risk tolerance. You should consult your business advisor, attorney, or tax and accounting advisor regarding your specific business, legal or tax situation.
"Diamond Standard”, “Bitcarbon” and the Diamond Standard logo and symbol are registered trademarks of Diamond Standard Holdings Ltd. The Diamond Standard Bar is protected by U.S. Patents, and Patents Pending.