The KGK Group has partnered with Singapore-based blockchain company, D1 Mint Limited to back their cryptocurrency coins. The crypto-coin company will buy $20 million worth of diamonds, manufactured at KGK Diamonds. These diamonds have been sourced from the Russian miner Alrosa.
As an initiative to open diamonds for investment, the KGK Group has agreed to support this blockchain startup, D1 Mint by delivering 1,500 investment-grade diamonds for $20 million, to tokenize diamonds. These stones will be examined for their quality by GIA, will be graded and laser-etched. They will then be sent for being secured in vaults in Singapore and Switzerland.
D1 Mint Limited is creating a diamond-backed cryptocurrency – the D1 Coins. This new diamond-backed cryptocurrency, D1 Coins will revolutionize the precious stones industry, making natural diamonds a promising investment option.
Mr. Sandeep Kothari, Managing Director, KGK Group and Hogi Hyun, Director, Diamundi Pte Ltd. signed papers at the KGK Antwerp Office on 21st May 2018 for this deal.
Anyone who invests in D1 Coins will be able to select specific diamonds from the created diamond reserve at any time. As a coin holder, you can convert your tokens into diamonds from the reserve at a fixed price, determined by the pricing algorithm of the company.
This diamond-backed cryptocurrency coin will bring transparency to diamond prices, and thus open diamonds for investors across the globe. It will attract investors worldwide to put their money into diamonds, leading to a higher demand for diamonds.
Alexei Chekunkov, a member of the international advisory committee for D1, the CEO of the Far East Development Fund, Government of Russia, Moscow and also a member of Alrosa’s board of directors said, “We believe that the approach taken by D1 will succeed in making natural diamonds an investment asset class attractive to various investor groups, drive higher demand for natural diamonds and support further growth of the diamond industry in Russia”.
The new diamond-backed cryptocurrency is definitely a beneficial step for the growth of the global diamond industry.
KGK manufactures and supplies the finest quality natural diamonds to diamond jewelry manufacturers worldwide.