Metals on the Blockchain: Companies Tokenize Gold, Copper, Uranium

Companies are tokenizing metals like gold, copper, and uranium on the blockchain, making it easier for investors to access physical commodities. Some companies are even issuing tokens backed by metals that haven't yet been mined.

The trend is part of a broader adoption of blockchain infrastructure in traditional finance, according to Joseph Lubin, CEO of Consensys. Lubin predicts that the global economy will move towards full asset tokenization.

Tokenized metal advocates believe blockchain can simplify access to commodity assets, providing direct exposure without the cost and complexity of futures. However, experts warn that the market remains at an early stage and comes with risks.

The World Gold Council notes that gold ETFs have a total value of $530 billion, while gold-backed tokens Tether Gold and Pax Gold have market capitalizations of $2.7 billion and $1.9 billion respectively. Metals.io has issued tokens linked to uranium, nickel, and cobalt, which can be redeemed for physical metal under certain conditions.

Nasdaq-listed Datavault AI plans to issue tokens backed by copper and antimony tied directly to future extraction, allowing investors to trade or hold the assets until mined metal is delivered physically. However, tokenizing physical metals comes with additional complexities, including market fragmentation and interoperability issues.