Digital asset custodian Hex Trust has integrated with the Tezos-compatible Ethereum Virtual Machine (EVM) Layer 2 Etherlink, aiming to provide institutional custody services for the tokenized uranium asset xU3O8 issued on the network.
This integration is supported by Trilitech, a research and development center adopted by Tezos, which developed Etherlink, aimed at working with Hex Trust to provide xU3O8 and other Etherlink-based asset services to institutional clients.
Giorgia Pellizzari, head of custody at Hex Trust, stated, "As more real assets go on-chain, tokenized commodities like uranium are gaining institutional attention."
xU3O8 is listed on multiple exchanges, allowing users to invest in physical uranium U308, a product supported by uranium trading company Curzon and the UK-regulated exchange Archax.
Related: Transak's partnership with Uranium.io allows users to purchase tokenized uranium with cryptocurrency.
Hex Trust expands tokenized commodity services to uranium.
The addition of uranium expands the range of commodities that Hex Trust's real asset services can cover, which are typically heavily regulated and difficult for institutions to access.
Ben Elvidge, head of commercial applications at Trilitech, stated that uranium is the 'perfect object for tokenization' due to its challenging market access and price transparency.
"Now, we can solve these two problems through blockchain. With compliant custodians like Hex Trust, it is easier for institutions to participate," he said.
Hex Trust holds licenses in Hong Kong, Singapore, Dubai, and Italy. Last year, the company announced it had received preliminary approval for a Major Payment Institution (MPI) license from Singapore's financial regulatory authority.
Related: RWA token market expected to grow 260% by 2025 as enterprises embrace crypto regulation.
Uranium.io brings uranium trading on-chain.
Last year, the world's first decentralized uranium trading application, Uranium.io, launched on the Tezos blockchain in partnership with Curzon Uranium and Archax.
The platform aims to lower the barriers to entry into global uranium trading, previously dominated by institutional investors. Retail investors could only access uranium indirectly through ETFs, while direct trading was mostly limited to capital-rich institutions.
Earlier this year, Transak partnered with Uranium.io to enable retail investors to purchase tokenized uranium for as little as $10 using cryptocurrency or credit cards, significantly lowering the minimum threshold of $4.2 million in the over-the-counter market.
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