Redemption: Physical Settlement of Uranium Tokens

Key takeaways:

• Uranium Digital provides institutions with a seamless method to convert digital tokens into physical uranium. The process bypasses intermediaries, ensuring quicker settlements, enhanced transparency, and real-time access to physical assets.

• Using Chainlink’s proof-of-reserve oracle and the expertise of Curzon Uranium, the redemption process guarantees that each token is backed 1:1 by physical uranium stored in audited facilities. Tokens are burned from the circulating supply upon redemption, maintaining a strict 1:1 backing ratio.

What is Redemption?

Uranium Digital enables eligible institutions to redeem their Uranium Digital tokens for physical uranium. This allows token holders to settle their digital assets with the 1:1 equivalent physical commodity.

Benefits of redemption

Qualified institutions can redeem Uranium Digital tokens for physical uranium, benefiting from a streamlined process that bypasses intermediaries. This efficient system enables direct access to physical assets, supporting real-time price discovery and contributing to overall market stability. By eliminating unnecessary steps, institutions gain quicker settlement times and more transparent transactions, making uranium trading more flexible and accessible.

How Uranium Digital ensures secure and transparent redemption

Institutions can seamlessly convert digital tokens into physical uranium, ensuring their investments are backed by tangible assets stored in accredited, audited facilities. Uranium Digital enhances transparency in this process using Chainlink’s proof-of-reserve oracle, which provides real-time verification that each token is fully backed by physical uranium.

Curzon Uranium, one of Europe’s largest uranium traders, securely facilitates the physical settlement, ensuring a smooth and reliable transition from digital assets to physical uranium. This partnership guarantees that each token represents one pound of uranium. Upon physical redemption receipt from the conversion facility selected by the redeemer, the pro-rata amount of tokens is burnt from the outstanding supply. There is never circulating tokens in an amount greater than what is on Uranium Digital’s converter account statement, further audited and verified by Chainlink’s proof-of-reserve.

Eligibility requirements for redemption

To redeem Uranium Digital tokens, institutions must hold a minimum of 20,000 tokens. They must pass KYC/AML checks and comply with applicable regulations. Additionally, the institution must have a verified account in good standing at their chosen facility (Cameco, ConverDyn, or Orano Cycle).

How to get started:

Step 1: Check eligibility requirements

To qualify, the institution must hold a minimum of 20,000 Uranium Digital tokens. The tokens will be placed in escrow once the verification process begins.

Step 2: Application

Create an account or sign in and complete the redemption form with the quantity of Uranium Digital tokens, wallet address, facility information (Cameco, ConverDyn, or Orano Cycle), and contact details.

Step 3: Verification and compliance check

After submitting the redemption form, you will be prompted to complete the AML/KYC form and provide supporting documents, including wallet verification and institutional details. Uranium Digital will then conduct a thorough compliance check and verify the account and institution information with support from our resource partner, Curzon Uranium.

Step 4: Approval and delivery

After verification, the tokens are burned, and the U3O8 is transferred to the institution’s converter account for physical settlement. At this time, there is no fee for physical settlement.

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