- Uranium.io launches in response to the growing demand for low-emission nuclear energy being driven by the AI revolution.
- Tezos blockchain technology makes it possible for retail market participants to access the uranium market and buy physical uranium.
- Physical uranium purchased via the platform is procured by Curzon Uranium, stored by Cameco, and traded via the Tezos blockchain.
Demand for uranium has been growing steadily in recent years, driven by two major factors. Firstly, governments worldwide are pursuing net-zero emissions targets that require carbon-free power sources, making nuclear energy an attractive option. This demand has been further supercharged by recent substantial investments from major technology companies grappling with the enormous energy requirements of artificial intelligence infrastructure. Companies like Microsoft, Google, and Amazon are all taking significant steps into nuclear power, with Microsoft planning to use a reactivated Three Mile Island reactor, Google contracting with Kairos Power, and Amazon investing $500 million in the X-Energy Reactor Company to meet its growing AI energy demands.1
Despite this, and unlike other precious metals such as gold, silver, and palladium which are readily available to retail audiences, access to this market has been restricted to institutional investors and has taken the form of over-the-counter trades with minimum lot sizes of 50,000 lbs and an associated purchase price of c. $4.2 million.2 Retail access to uranium has been only available through ETFs which are dependent on management efficacy in tracking the underlying price and listing availability. By tokenising the physical uranium and moving ownership on chain, it becomes possible to remove the barriers to entry presented by minimum lot size requirements that have prevented people from accessing this rapidly growing asset class.
Commenting on the launch of Uranium.io, Arthur Breitman, co-founder of Tezos, said, “Real world assets on chain are compelling when they meaningfully reduce friction or enable new economic arrangements. The launch of uranium.io on Tezos is a perfect example - transforming a market previously restricted by massive lot sizes and OTC overhead into something accessible and composable. This is particularly exciting as nuclear power is experiencing a revival.”
The uranium.io dApp on Etherlink, EVM-compatible Layer 2 blockchain powered by Tezos Smart Rollups, will serve as an intuitive tool for users to discover U3O8, commonly referred to as “yellowcake” and an important intermediate step in the production of nuclear fuel. Users worldwide will benefit from a number of compelling features, including the ability to connect a wallet and purchase physical uranium. Following an intuitive onboarding and Know Your Customer (KYC) verification process, users of the dApp will also experience many of the inherent advantages of decentralised platforms, including reduced counterparty risk, as the use of smart contracts automates trade settlement and custody transfers, eliminating the need to rely on traditional intermediaries who could default on their obligations.
Physical U3O8 purchased via the dedicated decentralised app will be maintained at a regulated depository owned and operated by Cameco3, one of the largest global providers of uranium. This provides an additional layer of transparency, with holders of U3O8 benefitting from institutional-grade services provided by platform partners highly regarded in their fields.
Real World Asset (RWA) tokenisation is emerging as a growth-driver for the blockchain sector, with analysis from Van Eck tracking the market capitalisation of institutional tokenised assets from near zero to over $300 million from January to September of 2023.4 Earlier this year, Blackrock, the world’s largest asset manager, began to tokenise the assets in its portfolios, a move that was heralded by many as a significant development for the providers of decentralised ledger and tokenisation technologies.
To learn more about purchasing U3O8, visit www.uranium.io.
About Tezos
Tezos is an open-source and energy-efficient blockchain designed to empower institutions, developers, and businesses and facilitate seamless value transfer in a digital environment. It is designed for the scalable deployment of decentralised applications. As one of the first Proof of Stake blockchains, Tezos is globally supported and valued for its strong governance, long-term upgradability, and smart contract capabilities. For more information about Tezos, visit http://www.tezos.com.
About Etherlink
Etherlink is a non-custodial, EVM-compatible Layer 2 blockchain powered by Tezos Smart Rollups. Etherlink is permissionless, inherits the technology of Tezos’ Layer 1, and features a decentralised governance model, fraud proofs, and censorship resistance. https://www.etherlink.com/
About Curzon Uranium
Curzon Uranium is a privately held commodity trading company with a global presence and outreach. It focuses on trading and investing in physical uranium and acting as a partner of choice for suppliers, traders, utilities & financials looking to buy or sell physical uranium along the nuclear value chain. https://www.curzonuranium.com.cy/
About Archax
Archax is the first ever digital securities exchange in London. Targeted at institutions, Archax also has its brokerage, custody and crypto permissions. Founded by experts from traditional capital markets and backed by an accomplished advisory board, Archax offers a credible bridge between the blockchain world and the existing investment space.. https://archax.com/
Media Contact
Eoin McGinley
Head of PR, Trilitech
eoin.mcginley@trili.tech
1Will AI’s huge energy demands spur a nuclear renaissance?, Nature: https://www.nature.com/articles/d41586-024-03490-3
2According to spot pricing information for June 2024 published by Cameco: https://www.cameco.com/invest/markets/uranium-price
3More information on Cameco regulations: https://www.cameco.com/sustainable_development/2016/about-cameco/regulatory-regimes/
4From 0 to over 300M$ Market cap in a Year: Tokenized Real-World Assets, VanEck: https://www.vaneck.com/uk/en/blog/digital-assets/from-0-to-300m-market-cap-in-a-year-tokenized-real-world-assets/
