NFT platform for fractional investing in precious gemstones

Unicsoft created a product concept and development roadmap to build a secure and transparent platform for precious gemstone investing that can be tokenized

About the project

The client turned to Unicsoft with the idea of creating a transparent and trusted platform for enabling fractional ownership of diamonds.

The idea was to create a platform that democratizes high-value asset investing for investors worldwide. The platform would source highly-vetted assets – previously only available to the ultra-wealthy, fractionalize them and offer shares to investors worldwide. 

Other investment platforms have focused on art, wine, cars, real estate, and other alternatives – you name it! But there is a vacant niche: precious gemstones. The vacant niche is Kimby’s starting point.

Kimby wants to unlock access to investing in unique gemstones to US and non-US accredited investors, and in future product functions tokenize the shares for secondary market mechanisms. Also, the platform had to provide different types of specific services, including diamond verification, logistics, storage, and selling.

Business Challenges

Precious gemstones have commonly been compared to verticals of private bonds and real estate but due to high entry barriers, like lack of transparency, painful price points, lack of accessibility, and inexistence of secondary market mechanisms, it makes it very challenging for investors to allocate to this asset class.

Demand for alternative assets, like precious gemstones is growing, but the everyday investor cannot allocate to this asset class. This is where Kimby comes in.

The solution

The idea was to launch a highly transparent and secure platform providing investors with access to previously off-limit gemstones. To create such an ecosystem, the client turned to Unicsoft to cover the first, but the most crucial phase of the project - business analysis. During the Discovery Phase, as we call it, we created product vision, technical & functional specification, designed user roles & flow for the platform.

Product Vision

Unicsoft focused on the platform’s vision to allow accredited investors worldwide to invest in precious gemstones, like fancy pink diamonds, by buying shares in them.

  • The pieces are highly-vetted, securitized and offered as equity to investors.
  • The platform is looking to tokenize shares as security tokens for secondary market mechanisms in the future releases. For example, financial operations and revenue distribution can become automated by smart contracts.

User Roles

During the Discovery phase, Unicsoft singled out the main roles of the platform:

Investor - a registered individual user who invests in diamonds via the platform and sells their assets via a secondary marketplace.
Admin - the platform’s staff who manages all the content on the platform, controls offers and deals, and provides support to Dealers and Investors.

Features

The developed product concept presumes the blockchain-based platform will have the following set of advanced features:
  • Marketplace containing a list of platform’s offerings with filters, sorting, and pagination functionality.
  • Registration with KYC to verify investor’s data against third-party databases to restrict access for untrusted investors.
  • Integration with crypto wallet to receive, store, deposit, convert, withdraw and manage investor’s funds and funds for sold diamonds.
  • Assets management - extended view on investor’s purchased and watched assets and tracking the underlying assets (diamonds) from a dealer to the vault.
  • Inventory management module module to upload and edit information about diamonds, their availability, price, etc.
  • BI module allows to generate various types of reports for analytical, accounting, and regulatory purposes by the admin role.
  • Fraud rules management module module allowing to automate system behavior based on those rules.
  • P2P Lending feature feature allowing platform users to borrow money directly from other platform users paying interest.
  • Staking option to stake the platform’s security tokens (diamond shares) for the platform’s native token paying interest.
  • Swaps for changing platform’s security tokens of one kind to platform’s security tokens of another kind.
Architecture
The solution will run on AWS cloud infrastructure utilizing message-based architecture and modern technologies like Docker, RabbitMQ, Redis, Lerna, etc.

The result

Discovery Phase deliverables enable our customer to start the development process as soon as possible with an account of all possible risks and stumbling blocks. The solution will definitely be success due to its undoubtable advantages:

  • a one-stop shop for investments in private securities
  • fully compliant with all relevant US investing regulations
  • greater security, reliability, and trust for financial operations

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