Tokenized Diamonds – Real-World Assets on the Blockchain

Physical to digital- Tokenized Diamonds on the Blockchain

Smart contracts and tokenization, two of the most significant blockchain innovations. Transforming the stagnant billion-dollar diamond industry into an interesting asset class. Currently, a significantly broader spectrum of investors can readily engage in this alluring store of value of tokenized diamonds. 

In the past year, the tokenization of tangible assets has experienced an extraordinary surge in popularity. This paradigm shift involves transforming conventional assets like diamonds, credit, gold, and bonds into digital tokens stored on a blockchain. It is worth noting that several globally recognised traditional finance giants, such as HSBC and Franklin Templeton. These giants have initiated tokenization-related pilot initiatives or have commenced providing tokenization services.

Tokenized diamonds

Tokenization represents a novel and potent approach to integrating digital assets with the blockchain. It includes equities, bonds, gaming assets, conventional real-world assets like commodities, real estate, and fine art. And now luxury assets like tokenized diamonds as an investment class. It enables anyone with a computer and internet access to take part in the sale and purchase of all types of tokenized assets with reduced friction. While it has the potential to liberate trillions to billions of dollars in liquidity. From conventional assets that are difficult to trade on existing markets. 

An instance of this is diamonds, a valuable gemstone that is predominantly exchanged within clandestine markets among the tangled webs of exporters, jewellers and mining corporations. Within this complex network of entities, the process of tracing the gemstone’s provenance can prove to be arduous. Resulting in the introduction of counterfeited diamonds and trafficked stones into legitimate markets, among other complications. 

The US Gemological Institute (GIA) assesses each diamond before tokenization. The Gemstone Certification and Appraisal Laboratory (GCAL) then receives the stones and assigns a valuation to each asset based on its opinion.

Tiamonds: A Gateway to Accessible Investment in Diamonds

A regulated and secure platform, Tiamonds was carefully developed to meet the requirements of all investors interested in diamond investment. It provides tokenized diamonds as a class of investment, thereby facilitating access to luxury investments. In the diamond industry, tiamonds have facilitated increased efficiency, transparency, and institutional-grade participation.

Tiamonds, which are non-fungible tokens based on Ethereum’s ERC-721 token standard, signify 1-1 ownership rights to genuine diamonds. In exchange for $TIA tokens, each NFT includes two certificates issued by LCX and GIA. As a Physical Validator LCX guarantees the security and integrity of every Tiamonds NFT. 

LCX has been granted regulatory authorization in accordance with the Liechtenstein Blockchain Act (TVTG) to function as a Physical Validator. LCX is tasked with the responsibility of ensuring the security and integrity of the Tiamonds NFT on the blockchain in its capacity as a Physical Validator. This process entails confirming the physical security of the tangible assets and verifying the authenticity of the underlying assets. In order to prevent fraud and other malevolent activities, the function of the Physical Validator is vital to the health and stability of the blockchain industry as a whole.

We classify diamonds acquired in accordance with United Nations resolutions and from a reputable source that refrains from conflict financing as non-conflict diamonds. Our suppliers ensure the absence of conflicts with each diamond. It guarantees that the extraction and transportation of diamonds adhere to ethical principles.

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Blockchain’s Transformative Potential

The utilisation of blockchain technology to tokenize gemstones on the Ethereum blockchain serves as a paradigm shift in the conventional financial domain. By capitalising on the fundamental attributes of blockchain technology, including decentralised consensus, transparency, and immutability. Which provides unparalleled benefits to the diamond industry. The integration of blockchain technology and the diamond industry not only facilitates accessibility but also optimises operations, eliminates intermediaries, and increases overall industry efficiency with easy investment in tokenized diamonds.

To Conclude

The process of purchasing and selling a gold bar or tokenized diamonds has never been simpler. Tokenization simultaneously resolves a number of issues associated with precious metals and diamonds, including illiquidity, opacity, and retail investors’ absence of access to a multibillion-dollar market, among others. The tokenization of diamonds marks a significant milestone in the development of blockchain technology and the world of digital currencies. As a result of the recognition of tokenized assets’ potential by global financial titans, diamonds are now emerging as an attractive investment opportunity for investors. 

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