Photonic active diamond nanoparticles attract increasing attention from a wide community for applications in drug delivery and monitoring experiments as they do not bleach or blink over extended periods of time. To be utilized, the size of these diamond nanoparticles needs to be around 4 nm. Cluster formation is therefore the major problem. In this paper we introduce a new technique to modify the surface of particles with hydrogen, which prevents cluster formation in buffer solution and which is a perfect starting condition for chemical surface modifications. By annealing aggregated nanodiamond powder in hydrogen gas, the large (>100 nm) aggregates are broken down into their core ( approximately 4 nm) particles. Dispersion of these particles into water via high power ultrasound and high speed centrifugation, results in a monodisperse nanodiamond colloid, with exceptional long time stability in a wide range of pH, and with high positive zeta potential (>60 mV). The large change in zeta potential resulting from this gas treatment demonstrates that nanodiamond particle surfaces are able to react with molecular hydrogen at relatively low temperatures, a phenomenon not witnessed with larger (20 nm) diamond particles or bulk diamond surfaces.