Singapore Exchange to Trial Blockchain Verification for Diamond Trading

A diamond exchange service based in Singapore is partnering with two blockchain startups.

Singapore Diamond Investment Exchange (SDiX) is working with Kynetix, which develops blockchain-powered commodity marketplaces; and Everledger, which uses the tech to track the trade of diamonds. The three firms are working on an authentication proof-of-concept aimed at creating verifiable trails for precious stones.

According to a press release, the concept is designed to enable holders of diamonds with certificates from a verification laboratory to authenticate the ownership and authenticity of the diamonds using a distributed ledger. Changes of diamond ownership on SDiX will be updated on the ledger, creating a digital record for market participants.

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

"This new concept draws on blockchain’s distributed ledger capability to demonstrate how we can further instill confidence and convenience for the benefit of diamond investors and financiers."

Companies and exchanges have been experimenting blockchain in industries where authenticity of physical commodity and identity can be a problem. It's an area that has attracted significant interest in the past year, with projects like one by the United Nations to record and authenticated aid for war-zone refugees.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Everledger.

Diamonds Image by Shutterstock