Coinbase is working to square regulations with decentralized finance (DeFi) as it moves to attract institutions to the space.

The exchange’s asset management arm recently debuted Project Diamond, a platform for mirroring debt instruments used in traditional finance by tokenizing them on Base, Coinbase’s layer-2 Ethereum network.

Project Diamond is pitched to help institutions create, buy and sell their own native digital assets. Coinbase says under 0.25% of global assets are currently represented on blockchains, and the effort is geared towards boosting that figure.

Coinbase is a public company regulated by the US Securities and Exchange Commission, and through its new real-world…

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