TechFinancials Inc (LON:TECH), a technology provider to financial trading brokers, is to provide funding to an organisation operating a blockchain-based online exchange for diamonds.
The AIM-listed group is lending the money to a consortium of companies that will operate under the name CEDEX.com, the company said in a statement.
READ: Techfinancials digs in while online trading markets settle
The funding is being provided through an unsecured loan bearing no interest and no redemption date; the understanding is that TechFinancials can seek repayment of the loan once CEDEX has sufficient funds to repay it.
There is also the option for TechFinancials to acquire a 90% stake in Cedex upon payment of US$40,000, though this payment may be offset against the amount of the outstanding loan.
Exercise of the option is at the sole discretion of TechFinancials and the option can be transferred, sold or disposed of as TechFinancials sees fit. The option period is for three years from the date of grant.
TechFinancials is also hoping that it will be able to provide technical development services on a fee-for-service basis to CEDEX to assist in the development of the trading platform.
TechFinancials believes CEDEX’s soon-to-be-launched service will be the first blockchain-based online exchange for diamonds; the long-term vision is to turn the traditional diamond industry into a financial tradable asset.
READ: Techfinancials looks to diversify as regulators scutinise binary trades
CEDEX will provide a novel way to invest in diamonds, aligned with TechFinancials’ vision of simplifying trading instruments.