Singapore’s diamond trading takes a shine to blockchain
Singapore Diamond Investment Exchange (SDiX) has teamed with Kynetix and Everledger to trial the “first-ever” blockchain verification and record-keeping service for diamond trading.
The technology is designed to enable holders of diamonds with certificates from a third party verification laboratory to authenticate the ownership and authenticity of the diamonds using Everledger’s DLT queried through Kynetix’s Sentinel market infrastructure platform.
Changes of diamond ownership resulting from trading on SDiX can be automatically updated via the facility, creating a permanent digital record to “ensure optimal functionality for market participants”.
Linus Koh, CEO of the Singapore Diamond Investment Exchange, says blockchain’s capability demonstrates “how we can further instil confidence and convenience for the benefit of diamond investors and financiers”.
According to the trio, the solution accurately authenticated the key details of a consigned diamond basket on SDiX consisting of certified stones using data points hosted online; a key part of the output is a “view receipt” of the digital certificate for each stone in the basket, housed on the blockchain.
The firms believe the system opens up the potential for a range of future applications for diamond market participants, including enhanced provenance data, increased supply chain security and efficiencies, and new risk management tools.