In order to avoid the regulatory challenges faced by many centralized exchanges and payment services, Diamond Standard has launched an alternative blockchain payment system called CARATS. CARATS is different from traditional centralized trading and payment services, as it uses tokenized diamonds backed by real-world commodities to facilitate payments, remittances, and wealth transfers between users. Individuals can purchase all or part of the tokenized diamonds to trade, transfer, exchange for local fiat currency, or choose to exchange tokens for physical diamonds. Diamond Standard achieves this goal by minting physical coins and bars with actual diamonds and integrating chips with tokenized versions of audited diamonds that broadcast assets on the blockchain.