Uranium3o8 and Madison Metals Partner to Create the First Spot Market for Uranium

Uranium3o8 ($U), a new token backed by uranium, has launched on Uniswap, a decentralized exchange. The token aims to create the first-ever spot market for the heavy metal, which is essential for clean energy and nuclear power.

The token is issued by Sanmiguel Capital Investment (Bahamas) Ltd., a financial advisory firm that specializes in tokenizing real world assets. The firm partnered with Madison Metals Inc., an upstream mining development company with uranium resources in Namibia.

Uranium is a valuable commodity that is in high demand, especially as countries seek to reduce their carbon emissions and rely more on nuclear energy. However, the current market for uranium is inefficient, opaque, and costly. Uranium transactions are done off-market, through complex negotiations that involve brokers and middlemen. There is no active futures market, making it hard to lock in prices and supply.

“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.”

The tokenization of uranium aims to democratize access to the commodity, allowing anyone to gain exposure to its price movements and liquidity. It also aims to enable more transparent and dynamic pricing, based on actual supply and demand. This should encourage more exploration and mining of uranium, which in turn should help meet the growing needs of the nuclear industry.

Each token represents one pound of physical uranium. Token holders who want to take delivery of the commodity must meet strict regulatory requirements and hold at least 20,000 $U tokens. The delivery is handled by Madison Metals, subject to legal compliance. The tokens that are delivered are burned, to ensure the token supply matches the physical supply.

The uranium backing the tokens is supplied by Madison Metals from its in-ground resources in Namibia. The company has pledged an initial amount of 20 million pounds to the project.

Madison Metals is a company with over 50 years of mining experience, 22 of those in Namibia. It has majority interests in advanced uranium projects in the country, and has an innovative monetization strategy that aims to provide non-dilutive capital and enhance shareholder value.

“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.”