Singapore Diamond Investment Exchange (SDiX), the commodity exchange in physically settled diamonds, has announced that it has partnered with Kynetix, the physical commodity digitisation provider, and Everledger, supplier of blockchain and distributed ledger 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.
The technology aims to enable holders of diamonds with certificates from a major third party verification laboratory to authenticate the ownership and authenticity of the diamonds using Everledger's distributed ledger technology queried securely 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.
The solution authenticated the key details of a consigned diamond basket on SDiX consisting of GIA-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.
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."