Carats Ecosystem
  • Intro to the Carats Ecosystem, a DAO governed by Bitcarbon
  • CARATS
    • Carats Intro
    • Ecosystem Overview
    • Carats Details
      • Carats Key Features
      • Carats are Commodity Tokens
      • Decentralized, User Managed Reserve
      • Carats Creation
      • The Carats Ratio
      • Carats Redemption
      • Carats Integration to Investment Products
      • Multi-blockchain; Liquidity
      • Recourse and Law Enforcement
      • Regulatory Oversight
      • Money Transmitter Considerations
      • Carats vs. Gold, Bitcoin, and Tether
      • Carats Commodity Architecture
      • Carats Benefits and Use Cases
      • Improving Upon Stablecoins
      • Carats Tokenomics
      • Carats White Paper
    • Liquidity Provision
  • CARATS.CC (MOBILE APP)
    • Mobile App Overview
    • Mobile App Details
      • Platforms and Regions
      • Buying Carats
      • Sending Carats
      • Selling Carats
      • Selling Carats for Local Currency
      • Advanced Features
        • Security & Backup
        • Two Party Escrow
        • Exporting and Restoring Your Wallet
    • White Label Carats Apps
  • BITCARBON
    • Bitcarbon Intro
    • Carats Access & Discounts
    • Value Accrual
    • Bitcarbon Details
      • Bitcarbon: The Governance Token for the Carats Protocol
      • Bitcarbon Governance Process
      • Trading Bitcarbon
      • Contemplated Additional Features
      • Bitcarbon Tokenomics
      • Bitcarbon Sale
  • TECHNICAL RESOURCES
    • Smart Contract Addresses
    • Smart Contract Audits
    • Carats API Guide
    • Carats Bridge
  • COMMUNITY
    • Media Coverage
    • Sites & Community
  • LEGAL
    • Carats User Agreement
    • Carats Platform Terms of Use
    • Privacy Policy
  • RESOURCES
    • Brand Kit
      • Carats Logos
      • Bitcarbon Logos
      • Graphics
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  1. CARATS
  2. Carats Details

Carats are Commodity Tokens

PreviousCarats Key FeaturesNextDecentralized, User Managed Reserve

Last updated 7 months ago

Carats are created by Diamond Standard Coins and Bars, which are regulator-licensed commodities that are approved to settle futures and options and be held by ETF funds. Each Coin or Bar contains an optimized and fungible set of certified natural diamonds, acquired through transparent bidding on an exchange. The commodities are equivalent, and trade at a market price listed by Bloomberg. These standardized commodities contain a wireless encryption chip, providing integrated authentication, audit and blockchain record-keeping features.

About $1.2 trillion of diamonds are owned by consumers world-wide. Unlike Bitcoin, which was overwhelmingly distributed to early-adopters and created with minimal economic input, natural diamonds were mined over generations, and represent substantial economic value—from the input of capital, labor, resources and taxes.

Diamonds are the ideal natural resource for a decentralized reserve behind a global currency, because of their broad distribution to consumers, dense value, diminishing supply, easy authentication, and portability. Gold by comparison is 600 times heavier per dollar.

The Diamond Standard commodities make diamonds fungible and easily traded. Commodity ownership, of Coins and Bars held by approved custodians, is conveyed by trading the tokens issued by the Coins and Bars.