The Singapore Diamond Investment Exchange (SDiX), commodity exchange in physically settled diamonds, announced its partnership with Kynetix, the physical commodity digitization expert, and Everledger, supplier of blockchain and distributed ledger infrastructure.

The partnership intends to complete first blockchain-based Proof-Of-Concept (POC) for authentic and secure record-keeping services for trading diamonds on a global commodity exchange.

With the help of Everledger’s distributed ledger technology, the POC will enable holders of diamond with certificates from a major third party verification laboratory, to authenticate the ownership of diamonds, securely through Kynetix’s Sentinel market infrastructure platform.

“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 instill confidence and convenience for the benefit of diamond investors and financiers,” Linus Koh, CEO of the Singapore Diamond Investment Exchange, said in the release.

The blockchain solution authenticated accurately the key details of a consigned diamond basket on SDiX that consists of GIA-certified stones using unique data points that are hosted securely online that are housed on the blockchain.

“It was a pure technical delight to integrate with Kynetix, a powerful combination of technology and purpose entwined. We are pleased to provide the market-leading blockchain infrastructure that is key to SDiX’s verification and data archiving services and look forward to working industriously with the market on creating purposeful tooling to enable safe and fast trading in physical diamonds,” Leanne Kemp, founder of blockchain startup Everledger, said.

The application paves way to potential range of future applications for the diamond market participants that include enhanced provenance data, increased supply chain security and efficiencies, among others.