The World Gemological Institute (WGI) has partnered with fintech company Vaultik to tokenize $3 billion worth of luxury goods, such as diamonds, gemstones, watches, and jewelry, on the Hedera blockchain. This collaboration aims to revolutionize the $100 billion diamond industry by utilizing a distributed ledger system to ensure the authenticity, transparency, and security of certified assets.
As part of the new agreement, all WGI-certified goods will receive a blockchain-based digital certificate, guaranteeing immutable verification of their origin, classification, authenticity, and ownership. One of the key innovations of this system is the ability to directly link insurance to digital certificates. Through a partnership with global broker Acrisure, clients can easily and quickly insure their valuable assets.
To enhance protection against fraud, WGI plans to laser engrave token identifiers on the items, similar to the numbers found on traditional diamond reports. Additionally, certified products will be equipped with NFC chips. Any attempt at tampering will result in the cancellation of the digital certificate. Buyers can verify the authenticity of their purchases by scanning the NFC chip with a smartphone, ensuring robust protection throughout the supply chain.
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