Natural diamond firms turn to blockchain traceability amid lab-grown competition
The Gemological Institute of America is set to acquire a stake in Tracr, which has developed a blockchain platform to trace diamond origin
Hit by competition from lab-grown diamonds and declines in pricing, the natural diamond industry is launching a large-scale traceability system to further build customer trust and establish provenance of the consumer jewels, in a move that industry observers say will boost sales.
De Beers Group, the world’s largest diamond producer and distributor, recently announced that the Gemological Institute of America (GIA) will acquire a 30 per cent stake in Tracr, a De Beers-backed firm that has developed a blockchain-based platform to trace the origins of diamonds.
The agreement highlights GIA’s confidence in the platform’s ability to scale up traceability of natural diamonds using industry-wide infrastructure, according to a statement from De Beers on Tuesday.