According to CoinDesk, a uranium-linked token called Uranium3o8 (U) has launched on Uniswap in an attempt to revolutionize the way the highly-regulated heavy metal is bought and sold. Ryan Gorman, head of strategy at Uranium3o8, stated that their goal is to create a spot market for uranium. The U tokens, which represent one pound of uranium, are backed by Canada-based public uranium exploration and development firm Madison Metals Inc. (GREN). Sanmiguel Capital Investments LLC is responsible for the token issuance and administration.
Owners of U tokens cannot request physical delivery of the underlying yellowcake without passing a strict compliance protocol managed by Madison Metals. Buyers must also redeem a minimum of 20,000 U tokens. Madison Metals CEO Duane Parnham revealed that the project has already received interest for up to $10 million of physical settlement orders from a compliant and licensed uranium broker. The token's uranium backing will come from Madison's Namibian mines, which are not yet in production, as well as partnerships with other industry players.
Uranium3o8 aims to make the asset's pricing less opaque and accessible for a broader investor base by replacing the industry's current procurement contracts process. The company plans to roll out additional products for the uranium industry participants early next year, according to Gorman.
