Sanmiguel Capital Investment (Bahamas) Ltd., a financial advisory firm assisting in the tokenization of real world assets, announced today that Uranium3o8 ($U), an asset-backed token backed by uranium, has gone live on Uniswap.
Until now, uranium transactions have been conducted off-market through complex negotiations that rely on opaque pricing, and costly delays due to negotiating with brokers and resource providers competing against RFPs or RFQs. There also is no active futures market, further reducing the ability to lock in pricing and supply predictably and reliably like one can with most other commodities.
Uranium is a vitally important commodity that is crucial to the clean energy future of our planet, yet it trades the same way it did decades ago despite being bought and sold in mass quantities for roughly the same amount of time as jet fuel – through paper-based transactions involving middlemen and layers of added cost.
“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.”
Democratising access to a vitally important resource
The goal of Uranium3o8 is to create the first-ever spot market for the heavy metal, allowing for efficient price discovery and dynamic pricing based on actual supply and demand and to enable people from all backgrounds to gain exposure to the price movement of uranium – thus, unlocking the commodity to new liquidity and in the process creating an entirely new asset class previously only available to a select few.
Demand for uranium is growing rapidly, and is expected to keep rising over the next several decades. With one report suggesting global uranium needs will double by 2040 as nuclear capacity surges at least 76 percent by that time on the back of dozens of new reactors being built and existing ones being recommissioned or expanded, and others seeing the lifetimes extended through reconditioning efforts. Even Japan and the United States are embracing nuclear fuel again.
Bringing more liquidity to uranium should enable more exploration and mining to occur, which in turn should help resource providers better meet the rapidly growing demand of nations increasingly turning to nuclear power as they seek to reduce overall carbon footprints.
“A new day has dawned for utilities, enrichers, and others looking to buy or sell uranium,” said Gorman, adding “and we’ve only just begun – soon, additional products supporting uranium industry participants will be brought to market early next year.”
How it works
Each token represents one pound of physical uranium. Token holders must meet strict regulatory requirements in order to take physical delivery of the commodity. The recipient must hold a minimum of 20,000 $U tokens (representing 20,000 pounds of uranium) and be able to prove to resource partner Madison Metals that they are qualified under local laws and regulations to receive it.
Subject to legal requirements, physical delivery is handled by Madison Metals. Once the actual delivery is complete, the tokens tied to the delivered uranium are burned. The Uranium3o8 team is responsible only for the issuance and administration of the token.
The uranium backing the $U tokens is being supplied from Madison’s in-the-ground resources in Namibia, with an initial amount of 20,000,000 pounds pledged to the project.
Madison Metals Inc. is an innovative upstream mining development company focused on sustainable uranium production within a world-class jurisdiction.
Holding majority interests in advanced tier-one uranium exploration and development projects in Namibia, Madison Metals’ innovative monetization strategy aims to provide non-dilutive capital to the company, enhancing shareholder value.
With over 50 years of mining experience, 22 of those in Namibia, the company’s management team has geological and financial expertise, and a history of creating value through exceptional business plan executions.
Uranium3o8 was launched by traditional financial industry and blockchain veterans with a vision to make navigating the global uranium market seamless and straightforward through transparent, secure transactions and physical delivery for qualified institutions. Our goal is to enable sovereign uranium ownership, and to provide supply security to clean energy generators around the world. We’re bringing the future of uranium access today.
To learn more about Uranium3o8, please visit:
About Madison Metals
Madison Metals Inc. is an upstream mining and exploration company focused on sustainable uranium production in Namibia and Canada. With over 50 years of mining experience, including 22 years in Namibia, its management team has geological and financial expertise and a track record of creating shareholder value.
Additional information about Madison Metals Inc. can be found at madisonmetals.ca and on the Company’s SEDAR+ profile at www.sedarplus.com.