In the past few years, we’ve seen gold, real estate, and even fine art step into the blockchain world through real-world asset (RWA) tokenization. But here’s a question many haven’t considered: could gemstones and diamonds be next?

RWA tokenization is essentially the process of taking a physical asset—like a bar of gold—and representing its ownership digitally through blockchain tokens. This allows fractional ownership, faster trading, and transparent provenance. For investors, it opens up markets that were once restricted to the wealthy or well-connected.

Colored stones like rubies, sapphires, and emeralds have historically been seen as both luxury goods and long-term stores of value. Diamonds, on the other hand, already have an established investment narrative, with grading systems (GIA, IGI, etc.) and price indices. But both categories face challenges:

• Illiquidity: Selling gems is not as easy as selling gold.

• Opaque pricing: Valuations depend on rarity, quality, and market demand.

• Authentication: Counterfeits and undisclosed treatments complicate trust.
  Tokenization could address some of these issues by linking a certified gemstone to a blockchain-based token, making ownership transferable and transparent.

We’ve already seen attempts in the diamond sector. Companies like Everledger use blockchain for diamond provenance, while others have experimented with tokenized diamond funds. However, adoption remains limited because the diamond market is tightly controlled and investors often lack confidence in valuation.

Colored stones are even trickier. No two sapphires are the same, which makes creating a standardized token difficult. While this uniqueness is what makes them beautiful, it complicates their suitability for tokenization. Instead, tokenized pools of gemstones—bundling multiple verified stones into a single financial instrument—may be more viable.

For gemstones to be successfully tokenized, the industry would need:

1. Global Standardization – Unified grading and reporting that investors can trust.

2. Trusted Custodians – Secure vaults and third parties to hold the physical assets.

3. Investor Education – Understanding gemstone markets, which are far less transparent than gold.

4. Liquidity Platforms – Exchanges where tokenized gems can actually be traded.

If gold, real estate, and art can be tokenized, gemstones might eventually join the RWA revolution. Tokenization won’t magically solve the issues of valuation and liquidity, but it could open a new market for collectors, gem lovers, and investors looking to diversify.

Whether it’s a Burma ruby or a flawless diamond, the day may come when owning a fraction of a rare stone is as easy as buying Bitcoin—or perhaps even as common as holding a share of stock.

Would you invest in a tokenized ruby or diamond if the market existed? Or would you prefer holding the gem in your hand instead of on a blockchain?