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No Longer Just An Institutional Darling: Uranium.io Allows Direct Investment In Uranium For Retail Traders

By Meg Flippin Benzinga

Get diversification that's not correlated with gold, oil and the S&P 500 with uranium.io.

U308, also known as yellowcake, is contained in mill concentrates extracted from uranium ore. Once uranium ore is mined, it is processed further at a regulated warehousing and conversion facility and converted into uranium oxide. U3O8 is an intermediate product used for nuclear fuel production to power Big Tech’s AI infrastructure and by governments around the world to meet their net-zero goals. 

Uranium Demand On The Rise 

Demand for uranium is increasing as AI takes off and the world moves to a greener future. Companies are investing hundreds of millions of dollars to purchase energy from nuclear power plants to power their growing AI initiatives. Meanwhile, President Donald Trump is gearing up to invest $70 billion into AI and energy in an effort to make the U.S. the leader in this space.

But AI isn’t the only driver of uranium demand. Countries around the globe are transitioning to nuclear energy as part of their efforts to achieve their net-zero carbon targets. Nuclear power is increasingly seen as a low-carbon power source to help countries around the world meet their goals. 

It also comes at a time when many investors are looking for long-term investment assets that give them diversification that isn’t correlated with oil, gold and the S&P 500. They get that with uranium. Even if the S&P is tanking and oil demand is declining, uranium could still remain in demand. The boom in AI and the power necessary to build out AI infrastructure isn’t dependent on oil or how much gold is mined. It doesn’t hurt that spot uranium has outperformed the S&P 500 substantially over the past five years. It’s why it's attractive to institutions and why uranium.io wanted to make it easier for everyday investors to get direct access to it. 

Want to get in on the tokenization craze with as little as $5? Click here to get started today with uranium.io

Leveling The Playing Field 

While uranium is in demand, direct investment in physical uranium has long been reserved for institutions. Uranium trades over-the-counter in large lots, with deals often requiring millions of dollars, shutting retail investors out of the market. Sure there are Exchange Traded Investment Trusts, managed funds and mining stocks, but investors don’t get direct exposure to the underlying commodity through these investment vehicles. 

Through a partnership with Tezos Foundation, which supports the development of the Tezos blockchain - an open-source, self-amending blockchain platform known for its focus on smart contracts - uranium.io was able to acquire a tradable lot of uranium, store and tokenize it, enabling average investors to purchase fractional shares of uranium in the form of a smart contract ledger known as an xU308. Each xU308 represents a unit of ownership of U3O8 held by Archax, which serves as the custodian for investors. Archax is the UK’s first regulated digital securities exchange. 

Meanwhile, the physical uranium backing xU3O8 is securely stored in a regulated depository operated by Cameco Corp., one of the world’s largest uranium providers. Trading is made possible thanks to Curzon Uranium, a globally recognized uranium trader with more than $1 billion in transactions. The integration of these three institutions in the trading platform helps facilitate the tokenization process for this heavily regulated asset, ensuring that the handling of trades is carried out with seamless regulatory compliance, reports Uranium.io.

There is no minimum purchase amount, which means you can start small, with as little as $4, and grow from there. Plus, it’s easy to begin buying uranium. All a customer has to do is sign up, create an account, fund it and start buying. Unless you are a regulated person with a converter account, you cannot request physical delivery of U3O8 – but everyone can buy, sell and hold your shares of the units you purchase. Users only pay custody and administration fees with the uranium.io platform, ensuring what the company says is a transparent and accessible pricing structure. Plus, you can trade uranium 24/7, 365 days a year from anywhere in the world on participating exchanges and the uranium.io platform, and enjoy near-instant settlements.

When it comes to tokenizing real-time assets, uranium may not be among the first to come to mind but it should. After all, it is in demand, is hard for regular investors to get their hands on and has been outperforming the S&P 500 for several years. For investors looking for a way to diversify their portfolio and get exposure to a booming market, uranium.io is giving them that. Ready to get started investing in uranium? Click here to learn more. 

Featured image from Shutterstock.

This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice.

This content was originally published on Benzinga. Read further disclosures here.