Carats.io, the Israeli tech start-up and Kela, a leading jewellery and diamonds e-tailer in Asia have entered into a strategic partnership which will boost the integration of diamond blockchain technology into the market, the two companies said in a joint release.

The alliance follows a recent meeting between Carats.io CEO and founder Avishai Shoushan and Kela’s founder Guo Feng in Tel Aviv, where they agreed to develop a strategic partnership regarding diamond trading using blockchain technology.

The alliance builds a bridge between two huge industries: the blockchain and the diamond & jewellery industry, providing great value for both, the partners said.

Through this alliance, Carats.io will become Kela’s blockchain and technology partner, while Kela continues to lead the way on the authentication of diamonds and the prevention of fraud. Additionally, Kela’s Founder Gou Feng will act as an advisor of Carats.io for the Asian markets.

“The cooperation with Kela, the largest online diamond retail in China, the biggest retail market in the world, will accelerate the Carats.io goal of building the first financial market for diamonds, and will bring much more diamond trading to the market by using blockchain technology,” explained Avishai Shoushan.

“Blockchain technology has been behind the formation of a global ecosystem. Kela, one of the largest online diamond retail platforms in China, will combine its business with blockchain technology, and comply with China’s rules and regulations. The cooperation between Kela and Carats.io will allow us to explore and develop blockchain technology together,” added Guo Feng.

Carats.io has created CARAT, a diamond-backed token which provides a solution for the need of a stable coin, basing its value on the positive appreciation of the diamond market. Additionally, Carats.io has created a state-of-the-art algorithm that has standardized price evaluation of the precious stones, and compares individual diamond grade to daily market conditions.

Kela, which was established in 2007, is the largest online diamond retailer in China and has 300 stores across the country. In addition to its online storefront, the brand also operates 36 stores in about 33 cities as a complement to its online business, with 60% of revenue contributed by 80% of online customers.