Publications
Publications
- September 2023
- HBS Case Collection
Diamond Standard
By: Lauren H. Cohen, Zhaoheng Gong and Grace Headinger
Abstract
Cormac Kinney, Founder and CEO of Diamond Standard, was on a mission to transform the U.S. diamond market through unlocking the precious gems as market-traded assets. As a serial FinTech entrepreneur, he hoped to add an additional service to his vault: Carats. The commodity currency would be backed by a fungible resource, being the first in its field to have a physical-digital combination. Following the recent crypto-market crash, Kinney wondered if this was the right opportunity to launch his product. Although Kinney saw Carats as the best of both gold and other decentralized currencies, his advisors were wary of the potential regulatory risks that could ensue, in addition to the current dreary landscape of the crypto-market. Should Diamond Standard pursue Kinney’s vision of Carats, or focus its limited resources on other diamond-backed financial products?
Keywords
Tokenization; Fintech; Cryptocurrency; Liquidity; Digital; Rare Earth Minerals; Decentralized; Crypto Economy; Financial Product; Metals; Diamonds; Commodity; Assets; Financial Instruments; Financial Institutions; Financial Markets; Investment; Technological Innovation; Natural Resources; Business Startups; Currency; Financial Services Industry; United States
Citation
Cohen, Lauren H., Zhaoheng Gong, and Grace Headinger. "Diamond Standard." Harvard Business School Case 224-009, September 2023.