Coinbase has launched Project Diamond, aimed at enabling institutions to issue native digital assets using blockchain technology.

The project integrates various Coinbase technologies, including its Ethereum layer 2 rollup Base, USDC stablecoin, Coinbase Prime custody services, and Coinbase Web3 wallet.

Project Diamond has received in-principle approval from Abu Dhabi's Financial Services Regulatory Authority for developing financial technology services.

CEO Brian Armstrong highlighted the potential for tokenising real-world assets, with only 0.25% currently represented on-chain.