Diamond Standard Co, a developer of the only regulator-approved diamond commodities, announced a commodity leasing program.

Owners of Diamond Standard Coins and Bars held in the custody of Brinks Vaults may now offer them for lease for 30-day terms to asset-back the issuance of Carats commodity tokens.

Like market-traded gold bars for natural diamonds, Diamond Standard commodities are approved as "good for delivery" to settle futures and options contracts currently in development and targeted to be listed in 2024.

Diamond Standard Coins and Bars are a "Smart Commodity " containing a wireless chip that issues a regulator-licensed blockchain token when they are held in an approved vault.

"Diamond Standard Coins are the only commodities that can pay regular dividends, even to individual investors," Diamond Standard Founder & CEO, Cormac Kinney told Benzinga.

This vault receipt can then be traded electronically – the token holder owns the commodity, whether that owner is an individual, an institution, an ETF, or a commodities broker.

Diamond Standard Coins and Bars can also issue a breakthrough commodity token called Carats, providing a Smart Commodity-backed alternative to stablecoins like Tether. Coins issue 5,000 Carats, and Bars 50,000.

To enable users to purchase small amounts of Carats, as opposed to an entire Diamond Standard Bar valued at over $43,000, the company borrows Coins and Bars from private owners to issue Carats.

With the proceeds from the Carat sales, the company produces new commodities to add to the reserve behind Carats and returns the private commodity to the lender with interest.