Tiamonds: One-Stop Shop for Tokenized Real-World Assets

Introduction

Tokenization has redefined how real-world assets (RWAs) are owned and stored. Instead of a few elites or wealthy individuals holding assets like gold, silver, diamonds and other gemstones, tokenization allows everyone to own a digital representation of these valuable assets.

Tiamonds is bringing this concept to everyone’s doorstep. This marketplace aims to bring traditionally illiquid assets like commodities, gemstones, real estate, and financial products to a decentralized community where everyone has equal opportunities to own them. This echoes its mission of providing “Freedom of Ownership.” Let’s take a deeper look at this tokenization platform.

A Deeper Look Into Tiamonds

Tiamonds’ name boldly nods to the combination of “tokenization” and “diamonds.” True to this, the platform initially positioned itself as a leader in a diamond marketplace where users can access digital twins of physical natural diamonds, all GIA Certified. Following the introduction of Total Tokenization, i.e. Tiamonds 2.0,  it has now expanded its offerings to other real-world assets like commodities (gold, silver, etc.), collectibles (fine art, watches, etc.), carbon credits, real estate, and more. These assets are accessible 24/7 across the globe.

The decentralized platform initially launched on the Ethereum network before expanding to the layer-1 Cardano blockchain. According to Tiamonds’ whitepaper, the platform will soon debut on other blockchains, such as Solana, The Open Network (TON), Base, and more.

Tiamond’s Total Tokenization partners with its physical validator, LCX, to authenticate and verify the physical assets of over 20,000 investable diamonds that the tokenization platform offers users. Interestingly, users of the NFT can redeem the physical diamond from Tiamonds at any time.

What Sets Tiamonds Apart?

Unlike most companies that tokenize assets through a Special Purpose Vehicle (SPV), Tiamonds takes a fundamentally different approach. The issue with SPV-based tokenization is that the assets are legally tied to the company. If the company were to shut down, investors could lose their assets entirely.

Tiamonds eliminates this risk by ensuring that every NFT issued on the platform is not just a digital representation but a direct ownership deed for the underlying asset. This means that even in the unlikely event that Tiamonds ceases operations, NFT holders retain full ownership of their assets. They can simply present their NFT at Tiamonds' partnered vaults and redeem the physical asset — whether it's a diamond, gold, or any other tokenized real-world asset.

This model ensures true decentralization and empowers freedom of ownership — giving investors the security, independence, and confidence to fully control their assets.

How the Tokenization Process Works

For each tokenized asset users acquire, here’s what goes on behind the scenes:

• Acquisition of Physical Assets: Before tokenizing a real-world asset, Tiamonds acquires the physical item from a trusted vendor or a certified source, all from non-conflict zones. The platform also has a decentralized marketplace where businesses and reputable users can list physical items to be tokenized. These listed items are checked for authenticity, quality, regulatory compliance, and market readiness.

• Physical Asset Validation: Before being stored or tokenized, Tiamonds’ physical validator, LCX, confirms the asset’s legitimacy, ensures regulatory compliance, and promotes transparency.

• Storage of Physical Assets: After the physical item is validated, it is transported to secure third-party vaults for storage. The platform safely keeps these assets in facilities across Liechtenstein. These RWAs are insured by the London-based insurance company Lloyd’s. Users are provided with certified proof that the platform backs their assets 1:1, fostering transparency.

• Digital Twin Creation: Once the physical item is stored, a smart contract automatically creates a 1:1 digital identical version of the asset represented as a non-fungible token (NFT). The smart contract also assigns ownership rights of each item to the user. And the best part, you can choose your favourite blockchain to get your assets minted.

• Blockchain Storage: The digital asset is stored on the blockchain following tokenization. With the user in complete control, tokenized assets can be tracked, transferred, traded, or gifted anytime.

• Additional Utilities: Tokenized assets can be integrated into other use cases within the Tiamonds ecosystem. This includes the Own-to-Earn model, which allows specific assets to gain token incentives. Collateralization of tokenized assets is coming soon—soon you'll be able to secure DeFi loans using your Tiamonds NFTs. Feature in development.

• Token Redemption: If the token holder decides to redeem the physical “real” version of their tokenized assets, they can do so through Tiamonds’ Token Tokenization platform. The user will be provided with the shipping details and associated fees. The NFT tied to their physical asset is returned to the platform to process the redemption process. Finally, the user receives their asset at a secure physical location.

The TOTO Token

The TOTO token is the lifeblood of the Tiamonds ecosystem. However, it is not a new token but an upgrade of the TIA token. Launched in June 2023, TIA was designed to incentivize those who buy tokenized assets via Tiamonds. Tiamonds’ token upgrade aligns with its recent step-up from solely being a diamond marketplace to Total Tokenization (TOTO).

TOTO retains all the functionalities of TIA, such as being an ERC-20 token and enabling staking, delegation, the Own to Earn model and discounted purchases on Tiamonds. However, TOTO has introduced additional benefits, such as becoming multi-chain by launching on blockchains like Cardano, Solana, TON, and Base. It also aims to enable integration with DeFi platforms, NFT marketplaces, and tokenized asset trading platforms.

TOTO has a total supply of 1 billion tokens. Here’s a breakdown of the asset’s tokenomics:

• Own to Earn Rewards: 35%

• Ecosystem Development: 32.5%

• Own-to-Earn Model (Currently in Circulation): 16%

• Community Rewards: 10.5%

• Growth and Marketing: 6%

The token is currently tradeable on LCX and Uniswap and more listings are coming soon.

Pros and Cons

Pros

• Detailed and MiCA Compliant whitepaper.
• Tokenized assets are regulated and certified.
• Security measures ensure users’ assets are safe.
• Tokenized assets are backed 1:1 by a physical counterpart, with Insurance on top.
• Tiamonds’ recent upgrade to Total Tokenization indicates ecosystem growth.
• Secured listing on price-tracking platforms like CoinMarketCap and CoinGecko.

Cons

• Users must divulge their personal details at the time of physical redemption of the assets.
• Unavailable on most popular crypto exchanges. (But plans to launch on Tier1 and Tier2 exchanges soo)

Conclusion

Tiamonds is on a mission to redefine how individuals interact with real-world assets. The platform’s recent upgrade to Total Tokenization paved the way for more individuals to gain exposure to more physical assets. By tokenizing these assets, the platform allows its users to own whole or part of items like commodities, gemstones, financial instruments, and more. Still, always do your research before deciding to invest in tokenized assets.