The diamond industry, long characterized by opaque practices and tightly controlled supply chains, is facing notable shifts as companies explore greater transparency and new business models. Oded Mansori, founder of HB Antwerp, advocates for transforming the traditionally secretive diamond trade through the use of blockchain technology, aiming to bring clarity and efficiency to the sector’s complex processes.
De Beers, one of the largest diamond producers globally, operates a tightly regulated system for distributing rough diamonds. Its clientele, known as “sightholders,” includes an exclusive group of family-run Indian cutters and subsidiaries of major jewelers such as Tiffany & Co. These participants attend approximately ten sales events annually in Gaborone, Botswana, where they inspect and purchase rough stones. However, they are bound by a system that requires them to buy allocated quantities at set prices, with refusal potentially leading to reduced or terminated future allotments.
Recently, De Beers carried out a significant reduction in its roster of sightholders, cutting about one-third of its existing clients. A company spokesperson, Johnson, attributed the move not to punitive reasons but to market conditions marked by a demand slump and a strategic decision to pilot diamond sales beyond the traditional sightholder network. This adjustment coincides with a slight decrease in the total amount of rough diamonds De Beers has available for sale.
The legacy distribution model has long involved diamonds changing hands multiple times—sometimes between 10 and 100 entities—before reaching retail stores. This intricate chain includes miners, brokers, sightholders, cutting services, and wholesalers. Each intermediary adds cost and complicates efforts to track a diamond’s precise origin, raising concerns about authenticity and ethical sourcing.
HB Antwerp seeks to disrupt this conventional framework by consolidating the value chain. The company manages the process end-to-end, from rough diamond sorting to final polishing, delivering assurances of provenance and quality backed by blockchain records. While Mansori and his associates emphasize the potential for increased transparency and accountability, they face considerable resistance. Margaux Donckier, HB Antwerp’s head of public affairs, described the industry’s response as hostile, citing efforts to block or boycott their operations.
De Beers has also raised objections, with Johnson noting claims that HB Antwerp sold diamonds from Botswana in ways that conflict with established trade protocols. This tension underscores ongoing debates within the industry over control, innovation, and how to balance tradition with emerging technologies.
As the diamond trade evolves, initiatives like HB Antwerp’s may challenge entrenched norms, potentially reshaping the market’s structure and transparency. Meanwhile, established players like De Beers appear to be cautiously adapting their approach amid shifting demand and competitive pressures.