Regulated Offering
Regulated Offering
Diamond Standard Bar Regulated Offering
Diamond Commodity Product with Utility Token Offering
Every Diamond Standard Bar (the “Bar”) is equal. It is a physical commodity composed of a statistically calibrated set of natural diamonds and an embedded digital blockchain token which is used to transact it. The sets of diamonds inside every Bar are equivalent, and public, geological samples.
When you purchase this product, we buy diamonds via an exchange as part of a large sample, and then assemble and deliver the physical diamond Bars. Your funds are held in escrow under regulatory supervision until the diamonds are received and inspected by an independent gem lab for assembly.
We will deliver your Bar to your address in the US, or to an approved US custodian on your behalf. Only while held by the custodian, can you sell your Bar by selling its integrated blockchain token.
The Diamond Standard Bar has been approved by CFTC-licensed market and clearing organizations, for futures intended (but not guaranteed) to be offered on the MGEX via the CME Globex platform.
Every Friday, during the offering price for new Bar sales will be updated to 10x the current Diamond standard Coin price
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. 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.
Transparency
This offering is made under regulatory supervision of the Bermuda Monetary Authority, Diamond Standard Ltd. (the issuer) 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 the blockchain.
The complete and statistically valid samples of diamonds, each of which approximate the earth’s yield curve, from which every Diamond Standard Bar are produced, are public and recorded on the blockchain.
This data can be used to prove that each sample of diamonds, and each Bar, contains a statistically equivalent sample 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 Diamond Standard Bars is not set by Diamond Standard. It is established from third party data, generally from trades in the market—just like gold. If trading volume is insufficient, data published on Bloomberg is used as a proxy. After this offering, Diamond Standard will sell new Bars at the market- determined fix as approved by the BMA.
When trading is enabled, owners may offer their Bar at a market price through an exchange, or to any buyer at a mutually agreed price. Tokens are not transactable until the Bars are delivered to the custodian. During this time, the value may go up or down, and you may not have liquidity.
The BCB token inside the Diamond Standard Bar is blockchain based, and in the future it may be listed and traded on a variety of cryptocurrency and digital asset exchanges. Diamond Standard will provide a list of venues on its website, when available.
How is this a commodity?
The Diamond Standard Bar is physical and engineered to be fungible. The production of the Bar and the offering is supervised by the Bermuda Monetary Authority and internally audited by Deloitte. The contents of each Bar are a geologically equivalent statistical sample of natural diamonds from all along the earthly yield curve of carat weights, colors and clarities. Each Bar is intended to trade on the market at the same price, just like a standardized gold bar, and they are always delivered to the owner or their custodian, and never held by Diamond Standard Co. You are not purchasing a share of a pool or a futures contract, you are purchasing a real, deliverable commodity containing a set 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 statistically calibrated set of diamonds, each Diamond Standard Bar contains a wireless computer chip. This chip enables electronic auditing and instant authentication, and also stores a blockchain token—a BCB (Bitcarbon Bar). The key to this token, which is issued on request and known only to the owner or their custodian, is a tradable vault receipt, for delivery on demand, of your specific Diamond Standard Bar.
The owner 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 custodian or 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 diamond sample must match the sample acquired by the Initial Offering. The detailed characteristics of every diamond, and the aggregate characteristics of every sample are always public, for anyone to verify. After it is verified, the diamond samples are divided by an optimizer into individual Bars.
Inside an independent gemological lab, each Bar is analyzed by an enrollment station, to optically and electronically inspect the Bar, the embedded chip and the diamonds. If all aspects of the Bar are verified, in one simultaneous moment, the Bar is optically imaged, 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, can the token become issuable and transactable. There is only ever one token per commodity, and the token itself is indivisible. 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 token?
Each Diamond Standard Bar contains a BCB Token. Coming Soon: If you sell your BCB Token on an exchange or privately, you sell your Bar. Currently, the BCB Token is not issued (“frozen”) unless the you request delivery, either to your blockchain wallet (or soon, to your account at an exchange).
Online trading is not yet available. Soon, you will be able to transact your BCB token on an exchange. Diamond Standard is in the process of integrating a third-party, regulated exchange service to enable transactions. After creating an account on the exchange, you will be able to transfer your BCB Token to your account, and then trade it for US dollars or other crypto currencies. We will post a notice on the diamondstandard.co site when trading is available.
To transact your BCB Token, your Diamond Standard Bar must be held by an approved custodian (to guarantee delivery to the buyer). Currently that “proof-of-asset” is offered by DS Trust Admin, a Delaware statutory trust which administers a physical custody account at Brinks Delaware.
Apart from custody fees, Diamond Standard charges no fees for any transactions you make after the initial sale of the Bar, however the exchange will charge market-standard fees for transactions.
What if my BCB token keys are lost or stolen?
If you take delivery of your BCB Token, and lose your key, as long as you have your physical Bar and ownership is not disputed, you can recover full use. To recreate a BCB token key, an independent gemological lab will simultaneously authenticate the Bar and destroy the token in the Diamond Standard enrollment station. Then they will dissolve the Bar, remove the diamonds, and reassemble them into a new Diamond Standard Bar. This Bar will be enrolled on the blockchain with a new BCB token, which refers to the diamonds’ original provenance data from the initial BCB token.
Diamond Standard cannot recover a token without the Bar being delivered to the independent gemological lab for authentication, destruction and recreation. We cannot simply reset your key or recover a password.
In-Hand Transactions:
When you take possession of your Diamond Standard Bar, you cannot list it on an exchange, take out a loan, or attach the BCB Token to a smart contract. There’s no proof-of-asset or guarantee of delivery for your counter-parties.
But you can still sell your Diamond Standard Bar to a buyer face-to-face. Anyone can use the Diamond Standard mobile app, 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 SEC regulated Options & ETF funds.
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 BCB Token on our platform, the custody of the associated Diamond Standard Bar must be administered at Brinks by DS Admin Trust.
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 to 60 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 linked to your corresponding Token, and we will deliver the Bar as you instructed.
If you choose delivery of 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 diamondstandard.co to create an account, purchase Diamond Standard Coins and/or Bars, select delivery options, tender payment, and complete KYC/AML forms.
Fees
After delivery of the Bar, Diamond Standard charges no fees to authenticate, buy, sell, exchange, trade, transfer, change blockchains or attach your token to smart contracts. 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.
$30 per additional Bar (USA only)
$20 per additional Bar