Global Commodity Exchange To Use Blockchain For Trading Diamonds

The world’s first commodity exchange for physically settled diamonds, the Singapore Diamond Investment Exchange, has announced that it will be using Blockchain technology for diamond authentication, data archiving, and trading.

According to an announcement, Singapore Diamond Investment Exchange (SDiX) has partnered with Kynetix, a physical commodity digitisation expert, and Everledger, a supplier of blockchain infrastructure, to complete the first part of a Proof-Of-Concept of a blockchain-based authentication and secure record-keeping service for trading diamonds on a global commodity exchange. 

Linus Koh, CEO of the Singapore Diamond Investment Exchange, said: 

“This exciting collaboration builds on SDiX’s record of delivering advanced technologies to enable a trusted, fair and transparent marketplace for trading diamonds as an investable asset class. This new concept draws on blockchain’s distributed ledger capability to demonstrate how we can further instil confidence and convenience for the benefit of diamond investors and financiers.” 

Securely keeping data on diamonds on the Blockchain 

According to Leanne Kemp, CEO of Everledger who already has major experience in doing diamond certification on the Blockchain, the laboratory houses inspect the stone, effectively digitize each of stones and take the 40 metadata points that make up the diamond and record it all on the blockchain. 

A similar system will be used for the SDiX diamond certification. The Blockchain-based solution accurately authenticates the key details of a consigned diamond basket on SDiX consisting of GIA-certified stones using unique data points hosted securely online. The holders of diamonds will also receive a digital certificate for each stone. Further changes of the diamond ownership resulting from trading on SDiX can be automatically recorded on the Blockchain. 

Blockchain technology is widely used for luxury goods, real estate, art authenticity, ownership and now diamonds registration as well. As we reported before, Ahmed bin Sulayem, chairman of the international Kimberley Process (KP), the key international organization aimed at stemming the global flow of conflict diamonds, has already proposed to use Blockchain technology to fight “blood diamonds” trading on the world market.