Web3 solutions providers such as NMKR are making it easy for businesses to tokenize their real-world assets using their platform and expand their business reach on a global scale. Leveraging Cardano’s decentralized and research-driven blockchain technology, NMKR offers an NFT and Tokenization service that aims to bring Web3 to the masses by making it easy for anyone to mint and issue tokens of their assets. This means increased potential for revenue, brand visibility, and new customers.
These days, more and more types of assets are being brought into blockchain through tokenization and this expands instantaneous access to markets previously unreachable by many businesses and people.
In this blog, we will take a look at one of the first real business partnerships utilizing blockchain for tokenization and the unique client benefits it provides.
Diamonds are one of the most sought-after physical items in the world, particularly for their uses in luxury jewelry. The precious gemstones are beyond the reach of many due to their pricing, and buying and investing in them can also be difficult due to administrative, handling, shipping, and safekeeping issues.
Through a strategic partnership with NMKR, Tiamonds provides a modern solution to these problems by using blockchain technology for the tokenization of diamonds.
Tiamonds is a platform that takes real diamonds and digitally tokenizes them as NFTs. The NFT issued by Tiamonds is a 1 to 1 representation of the ownership rights of real-world diamonds that are kept by the project. In other words, a Tiamonds NFT holder has the property rights to exchange it for a physical diamond whenever he or she wishes to do so.
Related reading:
- EMURGO Africa explains asset tokenization
- How NMKR maximizes brand impact for businesses using Cardano
The diamonds purchased are verified by the Gemological Institute of America (GIA). Each of the diamonds is certified by one of the highest authorities on independent third-party diamond certification. The diamonds are also purchased from legitimate sources not involved in funding conflict and compliance with UN General Assembly Resolution 55/56.
The diamonds are held in vaults contracted by the project and insurance is purchased using the Lloyd’s of London agency. As each NFT bought on the Tiamonds platform represents ownership of an individual diamond, the user can redeem his/her NFT for the physical gemstone after completing the legal requirements.
The platform also allows for the fast trading of tokenized diamonds. Anyone with a Tiamonds NFT can sell it over their system and receive the price for the stone, with the transaction being processed using blockchain technology. The counterparty immediately receives ownership of the diamond once the transaction is complete.
A Web3 service such as Tiamonds enhances the liquidity of diamonds and provides an interesting use case for tokenization, as people don’t have to physically move the stones from one location to another. Transactions and settlements are nearly instantaneous, completed with transparency (transaction information can be viewed in real-time online), and enhanced security. Every diamond has the GIA certification, so there is no risk of counterfeits inside the Tiamonds platform.
According to Tiamonds, it believes that “asset tokenization will grow to become a market worth at least USD 10 trillion by 2030, representing a 40-fold increase in the value of tokenized assets from 2022 to 2030. This would mark a significant rise from the current value of around USD 300 billion.”
Tiamonds partnered with NMKR to sell 34 of its NFT diamonds on the Cardano blockchain by leveraging NMKR’s tokenization platform. They identified Cardano as the next network to expand their tokenized diamonds due to its research-driven and provably secure technology and selected NMKR to prepare the NFTs.
The teams used the NMKR Studio tool to set up a store for the 34 Tiamond NFTs, as seen in this link. Within 48 hours, the entire collection of 34 NFTs sold out, marking a major success for the project and its first venture in the Cardano network.
Read more: What is NMKR Studio?
The teams also prepared a giveaway to celebrate Cardano Summit 2023, the annual flagship event for the Cardano blockchain ecosystem. Tiamonds prepared 10 of its unique NFTs for a giveaway at the Summit. The project distributed 1000 QR codes, and 10 lucky winners received the tokenized diamonds as NFTs.
The partnership showcases the versatility and power of NMKR Studio. Tiamonds was able to quickly set up its tokenized diamonds using Cardano NFTs which sold out almost immediately. Second, the team launched a giveaway during the most important Cardano event of 2023 to increase awareness and visibility.
NMKR and Tiamonds have shown the power of tokenization of assets using blockchain technology. It immediately opens up market access, reduces transactional friction, and speeds up settlement, all with increased security and transparency.
Are you interested in asset tokenization on Cardano using NMKR?
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You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained herein shall constitute a solicitation, recommendation, endorsement, or offer by EMURGO to invest.
