By Uranium-backed Token Uranium3o8 Goes Live on Uniswap
Uranium3o8, an asset-backed token backed by uranium, has gone live on Uniswap.
In a press release published on Tuesday, Bahamian financial advisory firm Sanmiguel Capital Investment Ltd announced that its uranium-backed token had opened for trading on Uniswap, with the goal of creating the “first-ever spot market for the heavy metal.”
“Uranium markets are ripe for innovation,” said Ryan Gorman, head of strategy for Uranium3o8. “If we are to effectively combat climate change and enable easier access to nuclear energy, we need to create more efficient markets for uranium itself, and tokenization is the best possible solution.”
Madison Metals Inc., a Canada-based public uranium exploration and development company, will provide the asset backing for the U tokens, which each represent one pound of uranium. The issuance and administration of the tokens are managed by Sanmiguel Capital Investment.
Despite being listed on a decentralized exchange, Uranium3o8’s website outlines a requirement for buyers to follow a “strict compliance protocol” overseen by Madison Metals when requesting physical delivery of the metal. The protocol is in place to ensure that buyers do not have malicious intentions for the uranium, such as using it to build a nuclear weapon.
Additionally, owners looking to redeem the physical commodity must hold a minimum of 20,000 U tokens, and must be able to prove to Madison Metals that they are qualified under local laws and regulations to receive the metal.
Madison Metals CEO Duane Parnham told Coindesk that the project has already received interest in a $10 million order from a broker who is interested in delivering the metal to an enricher in Europe.
Demand for uranium is experiencing significant growth and is projected to continue increasing in the coming decades, Uranium3o8 said in its press release. The company cited a report from the World Nuclear Association asserting that global uranium needs are expected to double by 2040.
The surge in demand is attributed to the substantial growth in nuclear capacity, which is estimated to increase by at least 76 percent by 2040. This expansion is driven by the construction of numerous new reactors, as well as efforts to recommission and expand existing ones.
“A new day has dawned for utilities, enrichers, and others looking to buy or sell uranium,” Gorman said, adding that Uranium3o8 plans to bring additional products supporting uranium industry participants to market early next year.
Enter your email for our Free Daily Newsletter
A quick 3min read about today’s crypto news!
