Zodia Custody Launches Tokenized Emerald Service With GEMx

Zodia Custody, a crypto custodian supported by major financial institutions such as Standard Chartered and SBI, has initiated a new service to safeguard tokenized emeralds. This development is the result of a strategic collaboration with GEMx, a Swiss fintech company that focuses on blockchain-based co-ownership of precious stones.

The partnership introduces the EmGemX token, which enables institutional investors to gain fractional ownership in a diversified portfolio of high-quality emeralds. This innovative approach democratizes access to the gemstone market, making it more accessible to a broader range of investors.

The tokenization of real-world assets (RWAs) is bridging the gap between the blockchain world and traditional finance. In this instance, physical emeralds, which have historically appreciated at an average annual rate of around 9%, are securely stored in vaults and undergo regular, independent appraisals. This ensures that the value of the tokenized assets remains accurate and reliable.

Paul Poltner, CEO and co-founder of GEMx, highlighted the significance of this partnership. "Partnering with Zodia Custody is a major milestone in our mission to bring institutional trust and stability to the gemstone investment market," he stated. Poltner further emphasized the benefits of the framework developed with GEMx, noting that it delivers real-world value through digital innovation that is secure, auditable, and historically inflation-resistant.

This collaboration represents a significant step forward in the integration of blockchain technology with traditional financial assets. By tokenizing emeralds, Zodia Custody and GEMx are not only enhancing the liquidity and accessibility of these precious stones but also providing a new investment avenue for institutional investors. The secure and transparent nature of blockchain technology ensures that the value and ownership of these assets are accurately tracked and verified, instilling confidence in the market.