Crypto Update | Tokenized Uranium Goes Live on the Tezos Blockchain

Summary

Markets Daily Crypto Roundup: Detailed Summary

Episode: Crypto Update | Tokenized Uranium Goes Live on the Tezos Blockchain
Host: Jen Senassi
Guest: Arthur Brightman, Co-founder of Tezos
Release Date: December 9, 2024

---

1. Introduction

In this episode of Markets Daily Crypto Roundup, host Jen Senassi engages in an insightful conversation with Arthur Brightman, the co-founder of Tezos. The discussion centers around the latest development in the crypto markets: the launch of Uranium IO, a tokenized uranium offering on the Tezos blockchain. The episode delves into the implications of this project for retail investors, the strategic direction of Tezos, and the broader landscape of tokenized commodities.

2. Current Market Observations

Arthur Brightman begins by sharing his perspective on market monitoring:

Arthur Brightman [01:58]: "I'm not an avid market watcher... I glance at it in the morning once and then, you know, that's about it. I'm not an active trader in this market, I hold positions, but that's okay."

He emphasizes a balanced approach to market observation, focusing on key metrics like the exchange rates between Tez and major currencies, while also acknowledging interest in broader economic indicators such as equity and commodity markets.

3. Introducing Uranium IO

Jen steers the conversation towards Uranium IO, highlighting its significance:

Jen Senassi [02:40]: "The reason we have you here talking about markets is because there is a new project on Tezos called Uranium IO. This is a project that offers tokens backed by physical uranium oxide, U308. Can you talk us through what this is and what this means?"

Brightman explains the uniqueness of Uranium IO in the tokenized commodities space:

Arthur Brightman [02:58]: "It's the only electronic marketplace today where you can buy spot physical uranium. These tokens represent direct beneficial ownership of uranium in storage with Kamiko. That's unique... Previously, options were limited to trusts like the Sprott ETF, which are dependent on fund managers and don't directly track the uranium market."

4. Significance for Retail Investors

The introduction of Uranium IO addresses a longstanding gap for investors seeking direct exposure to uranium as an asset class. Brightman elaborates on the limitations of previous investment avenues and how Uranium IO revolutionizes access:

Arthur Brightman [03:18]: "If you wanted a pure play and directly own physical uranium, that's pretty much it—either that or do $4 million worth of OTC trades with other market participants. It's really unique..."

5. Operational Mechanics of Uranium IO

Jen requests a breakdown of how Uranium IO functions for interested investors:

Jen Senassi [05:17]: "How's it going to work so very concretely...?"

Brightman details the technical and regulatory framework:

Arthur Brightman [05:17]: "The token has been launched on Etherlink, a layer two solution built on Tezos that's EVM compatible. Users undergo a KYC check due to uranium's regulatory nature, after which they can interact with an on-chain contract to trade or purchase the uranium token. This setup offers a DeFi-like experience without the typical complexities."

He further connects the project's relevance to current global energy demands and the resurgence of nuclear power:

Arthur Brightman [06:30]: "We're seeing a surge of interest in nuclear power... Younger generations and the environmental movement are now pro-nuclear as it provides a reliable, low-carbon energy source."

6. Tezos' Strategic Direction and Future Commodities

Jen probes into how this project aligns with Tezos' broader strategy:

Jen Senassi [07:00]: "Are we going to see more tokenized commodities come into the Tezos ecosystem?"

Brightman expresses optimism about expanding into other commodities, contingent on the success and learnings from Uranium IO:

Arthur Brightman [07:15]: "Once we have those iterations down, there's a lot more commodities to explore... Tezos shows its strength by focusing on meaningful applications and not empty hype."

7. Challenges in Mainstreaming Tokenized Commodities

Addressing potential hurdles, Brightman identifies both regulatory and perceptual challenges:

Arthur Brightman [08:39]: "There's a lot of legal work in finding a solid regulatory framework... Perception challenges exist as crypto-native solutions might not resonate with those outside the space. It's about bridging that gap."

He emphasizes the importance of making tokenized commodities accessible to a broader audience beyond crypto enthusiasts.

8. Expanding Accessibility Beyond Crypto Ecosystem

Jen highlights the industry's ongoing efforts to attract non-crypto participants:

Jen Senassi [10:20]: "How do you think about bringing folks who are not used to operating within the crypto ecosystem to this project and to participate in it?"

Brightman outlines multiple avenues for participation, ensuring inclusivity:

Arthur Brightman [10:35]: "Apart from Ernium IO, tokens can be purchased on Archex, a centralized exchange. Expanding to more venues will create a more accessible experience for a wider audience."

9. Tezos in the Competitive Landscape

Transitioning to Tezos' position in the evolving blockchain ecosystem, Jen inquires about its strategy amidst rising competition:

Jen Senassi [11:06]: "What does 2025 have in store for you? Are you making a comeback?"

Brightman reflects on Tezos' technical advancements and renewed focus:

Arthur Brightman [11:31]: "Tezos has been modernizing its technology, launching smart rollup systems capable of handling a million transactions per second... Etherlink, as a layer two solution, refreshes what Tezos offers with fast, low-latency transactions."

10. Navigating Increased Competition Among Layer Ones

Jen raises concerns about Tezos potentially lagging behind newer layer one blockchains:

Jen Senassi [13:06]: "How do you think about remaining competitive? Do you feel maybe a little bit behind?"

Brightman counters by differentiating Tezos from competitors, emphasizing meaningful innovation over mere token inflation:

Arthur Brightman [13:29]: "There are very few chains truly competing in a meaningful way. Many new projects are short-term, focused on quick token sales rather than sustainable development. Tezos stands out by committing to long-term, real-world applications."

11. Future Industry Narratives

Jen seeks Brightman's insight into the dominant narratives shaping the crypto industry towards 2025:

Jen Senassi [15:05]: "What narrative do you think is going to drive this industry next year?"

Brightman offers a candid perspective, highlighting the potential pitfalls of narrative-driven growth:

Arthur Brightman [15:25]: "AI and AI Agents are going to be a major narrative, likely fraught with hype. While intriguing, the best narratives are those grounded in achievable realities. Tokenizing commodity trading is a practical and impactful narrative that Tezos is pioneering."

12. Tezos as the Blockchain for Commodities Trading

Jen concludes by probing whether Tezos aims to solidify its role in commodities trading:

Jen Senassi [17:07]: "Is Tezos going to be the blockchain for commodities trading?"

Brightman expresses his aspiration and belief in the feasibility of this vision:

Arthur Brightman [17:11]: "I hope so. Tokenizing commodities like uranium addresses a real market need for electronic spot trading, showcasing Tezos' capability to handle meaningful and impactful applications."

13. Closing Remarks

The episode wraps up with Jen thanking Arthur Brightman for his valuable insights and encouraging listeners to stay tuned for future discussions.

---

Conclusion

This episode of Markets Daily Crypto Roundup offers a comprehensive exploration of Uranium IO's launch on the Tezos blockchain, underscoring its potential to democratize access to uranium as an investment. Arthur Brightman's expertise provides listeners with a nuanced understanding of the technical, regulatory, and strategic facets involved. Additionally, the conversation sheds light on Tezos' resilience and adaptability in a competitive blockchain landscape, positioning it as a formidable player in the realm of tokenized commodities trading.

---

Notable Quotes:

• Arthur Brightman [02:58]: "These tokens... represent direct beneficial ownership of uranium in storage with Kamiko."

• Arthur Brightman [07:15]: "Once we have those iterations down, there's a lot more commodities to explore."

• Arthur Brightman [11:31]: "Etherlink is an example of this technical work that has happened. It's a layer two solution built on top of Tezos."

• Arthur Brightman [15:25]: "AI and AI Agents are going to be a major narrative, likely fraught with hype."

---

For those interested in the intersection of blockchain technology and commodities trading, this episode provides valuable insights into the evolving landscape and the strategic moves shaping the future of the crypto markets.

Transcript

[Jen Senassi]

With Credit Karma, finding the right credit card for you is easy. Our app analyzes user profiles to suggest personalized recommendations. Visit CreditKarma.com today to explore cards tailored to your needs. Credit Karma. Simplifying your financial choices.

[Arthur Brightman]

There's clearly a lot of interest in hearing him as an asset. It's a huge, systemically important asset for the world and it's missing an electronic marketplace. So going into those areas I think is super interesting.

[Jen Senassi]

Imagine a blockchain built for you. No wallets, no keys, no hassle, just innovation. Welcome to Zion, the first walletless layer one blockchain purpose built for consumer adoption. With Zion, developers can build, launch and scale products that are ready for the masses. No technical barriers for users. Thanks to groundbreaking chain abstraction. All it takes to join the crypto revolution. An email. Say goodbye to complexity and hello to possibility. Ready to take the leap? Explore zion [e-mail] we all want to believe in something. In Chinese, belief also means trust. We want to trust our systems and each other so we can build a future beyond what we know. Join us at Consensus Hong Kong, where belief becomes real. Hello and welcome to Markets Daily, hosted by me, Jen Senassi. On this show, we navigate the currents shaping the crypto markets, providing insights into the broader financial landscape. So whether you're actively trading or simply fascinated by the volatility that is the crypto markets, this show is your compass to understanding what's happened, where we are, and where we're going. On today's show, we're joined by Tezos co founder Arthur Brightman. Arthur, welcome.

[Arthur Brightman]

Thanks for having me.

[Jen Senassi]

Of course. Now I said this probably the last like 20 shows we've had, but what an exciting time to be talking about the crypto markets. Talk to me about what you're watching today.

[Arthur Brightman]

Oh, in terms of the market. So, you know, I'm not an avid market watcher. I think, you know, I wake up and I have a, I have a dashboard and I look at a bunch of like, markets, you know, not just in crypto. I also, you know, I think equity markets are, and commodity markets are also very, very interesting. But you know, I, I, of course, you know, I look at the exchange rate between Tez and, and Bitcoin or USD. I also look at the exchange rate of the Bitcoin to, to USD. I like saying exchange rate. This is a price, you know, price in some sense you're already, you, you're considering something and you know, equity markets, broad commodities, but you know, I, I, I glance at it in the morning once and then, you know, that's about it. I'm not an active trader in, in this market, I hold positions, but that's okay.

[Jen Senassi]

Well, the reason we have you here talking about markets is because there is a new project on Tezos called Uranium IO. This is a project that offers tokens backed by physical uranium oxide, U308. Can you talk to us about what this is and what this means?

[Arthur Brightman]

So that's a uranium oxide molecule, or also known as the yellow cake. So if you're digging in the ground and trying to find uranium ore, most of the time it's going to be in this form.

[Jen Senassi]

Talk to me about Uranium IO, what challenge does this solve for retail investors who were previously trying to gain access to the commodity?

[Arthur Brightman]

I mean, I would say retail investors, but honestly it's much broader than just retail investors. It's the only electronic marketplace today where you can buy spot physical uranium. And that's the thing. These tokens, they're not a fund, they're not anything like that. They actually represent direct beneficial ownership of uranium in storage with Kamiko. So that's unique. It's not something that's available. Like if you wanted to have exposure to uranium as an asset class, your options were quite limited before that. You could go and buy a trust like the Sprott etf, but it's a fund and it's not directly linked to the uranium market. So you're dependent on the fund manager to actually do the creation and redemptions. And so as a result, for a long time it doesn't necessarily track the market. You have uranium stocks, but if you wanted a pure play and directly own physical uranium, that's pretty much. It's either that or do $4 million worth of OTC trades with other market participants. So it's really unique and it's really interesting that we're seeing, I would say, blockchains used finally for this thing that they were touted out as being great for, which is opening new markets, globally accessible markets.

[Jen Senassi]

Talk to me about the significance of this because I believe this is not the first time that a project has launched a tokenized uranium offering like this. What's different?

[Arthur Brightman]

So there was a project before that, but what they had, it wasn't directly physical uranium. They were sort of backed by a forward sales contract from like one mining operation and then entered into some kind of NFT project. So this is very different. This is direct beneficial ownership of oxide. And that's not something that's been done before. And as a result you have basically this direct Link with the physical aspect is what was missing.

[Jen Senassi]

Now take me right back to the basics. Talk to me about how this is going to work for investors who are interested in participating.

[Arthur Brightman]

How's it going to work so very concretely. So this token has been launched on Etherlink which is a layer two solutions built on top of Tezos which is EVM compatible. So for people who come from EVM type of ecosystems it will be a very familiar situation. You can go on yourneum IO there's a KYC check that's required. So it's an on chain system. So the registry is being represented on chain. However, for regulatory reasons due to the nature of uranium, people have to pass some KYC checks. But once they've done that they basically have access to an almost defi like experience. It's not defi, but it is the same type of experience where they can interact with an on chain contract that can let them trade or purchase this uranium token. And I think it's a really exciting asset and a very exciting moment. We're seeing a surge of interest in nuclear power. There's also a surge of demand for energy, specifically with AI coming in as a huge consumer of energy. So we're seeing this at the same time new nuclear power plants are being built. All nuclear power plants are being put back into use. And it's also come from a generational shift in terms of attitudes towards uranium with older generation, I think on the environmental movements being against nuclear but now younger generation and the environmental movement being pro nuclear because it is one of the energy sources that doesn't have carbon carbon impact all the same time giving you a more reliable baseload than you would get from renewables.

[Jen Senassi]

Talk to me about what this says, if anything, about Tezos is I guess strategy moving forward. Are we going to see more tokenized commodities come into the Tezos ecosystem?

[Arthur Brightman]

Yeah, I'd be excited to do that. I think we want to see how well this Ernie IO is going to play out. I think we want to learn lessons from it. It's a very, very competing offer. We're going to know like how can we make it even better iterates and then once we have those iterations now down, there's a lot more commodities. I think what was interesting is, you know, we've seen people try to commodity, you know, to, to tokenize other communities before people have done gold, people have done silver. The issue with that is there's so many ways you can own gold. You know, it's, it's accessible everywhere you could buy an etf, you could buy physical gold. It's just available everywhere. It's much more interesting to go after markets which have clear demand. Like there's clearly a lot of interest in uranium as an asset. It's a huge systemically important asset for the world and it's missing an electronic marketplace. So going into those areas I think is super interesting. And for Tezos, it's a real opportunity because it shows to the world. Historically it's been the blockchain, doing things for real, doing decentralization for real, doing governance for real, focusing on meaningful applications and not empty hype. And that's a great demonstration of that.

[Jen Senassi]

Well, the way you describe it is, you know, you're going to watch and see it's an exciting experiment. Talk to me about the challenges that you think at Tezos and the broader industry might face as tokenized commodities become more mainstream, become more commonplace.

[Arthur Brightman]

I think, you know, there's a lot of, there's a lot of work that went into doing this. There's a lot of legal work that went into finding a framework that was, you know, solid from a regulatory perspective, but also accessible for people. And finding this right balance and finding the right set up to do this took a few iterations. There's also, I would say, some perception challenge because for a lot of people in the crypto space, they may be used to this type of solutions and like using the chain for making transactions, using wallets. People outside of the crypto space might not have this expertise. And I think it's a bit of a bridge asset because the nice thing again with uranium, is that it's an asset that can appeal to a lot of people who found cryptocurrencies appealing. It is technologically flavored, I would say, because it's an asset that powers technology. It has historically a lot of volatility. And I think that volatility is a feature that actually have attracted people in this space. It's an alternative assets. It's an asset that gives you the type of exposure that you initially wouldn't have. So in that respect, I find that much more exciting than tokenize index funds or tokenize money markets or any of that stuff. And it's solving a real problem. So sorry to go back to the challenges I think we want to bring. We don't want this product to be only for people who are used to crypto products and who are used to this. We would like to bring many more people, everyone who basically has an interest in uranium as an asset class for this to be perhaps their first foray on a blockchain.

[Jen Senassi]

I think that many, many projects are trying to do that. You and I know that. How, how do you think about bringing folks who are not used to operating within the crypto ecosystem to this project and to participate in it?

[Arthur Brightman]

Well, the point is that there are many ways to participate in this project. One is via Ernium IO, but you can also purchase this on Archex, which is a centralized exchange. And I think more venues will be able to offer this product and so that way create an experience that's less accessible for a wider audience. And I see a lot of projects claiming that they want to do this. I see a few projects doing it in practice.

[Jen Senassi]

It's been, I guess a while since Tezos has been in the headlines. Of course, this news launched probably about a week ago now. Talk to me a little bit about Tezos in 2025. What can we expect? Are you, and I say making a comeback? Because there was one time when we couldn't have a news day without hearing about something that was going on in the Tezos ecosystem. What does 2025 have in store for you?

[Arthur Brightman]

Look, I think we're in an industry that fuel bear reflexivity. So people, when people talk about something, they talk about something more and more and more. For Tezos, there's been a long period of essentially focusing on the technology, modernizing the modernizing technology. Tezos was the most advanced blockchain from a technical perspective when it launched in 2018 and then it launched that status. It had a lot of advantages, a lot of benefits, but overall I would say there was a lot of technical innovation and it didn't incorporate them soon enough. And that has started changing since last year with the launch of the smart rollup systems on Tezos almost now, a year and a half ago, an administration of a million transactions per second across different roll ups. So it's been a period of basically I would say focusing a lot on a core background work to make the change. Was the most compelling technical offering possible, but at the same time also working on some of the solutions. So I mentioned that Zero had launched on Etherlink. Etherlink is an example of this technical work that has happened. It's a layer two solution built on top of Tezos. It's compatible with the EVM world so that we can onboard everyone who's been using those EVM chains without them having to change their habits, them being like users or developers. But it also has these nice characteristics like less than under 1 second latency for transactions and Very, very fast confirmations for all of that makes it a very, I would say it's a refresh offering for what Tezos has to offer to users and developers.

[Jen Senassi]

You know, during that quiet time, many other layer, new layer ones popped up. I think you have a lot more competition now than you maybe did when Tezos was first launched in 2018. How do you think about remaining competitive and do you feel maybe a little bit behind as you've been figuring out the technical aspects in this quiet time?

[Arthur Brightman]

No, I don't think there's that many more competitors, to be honest. There's a lot more, I think there's a lot more L1s, but there are very few people who are actually interested in doing something real. There are some and those are the real combinators. But there's a lot of people who are here basically where they'll raise money from some VCs they'll have, they'll hold 90% of their token, then their game will be to sell their tokens quickly over the next few years. These are not long term competitors. So, you know, in that respect I think there's tough competition, but it's a small amount, it's a small number of chains which I would say are really competing against like series of RPGs.

[Jen Senassi]

I mean, I guess what it sounds like you're saying is there will be some kind of consolidation amongst layer ones as we move into the future. How many, like how, how do you envision that? How do you see that unfolding?

[Arthur Brightman]

It's tough because I would say in almost any other, in almost any other industry you would see a ton of M and A because you have network effects, a crowded environment. And so in this environment, it was going to be a perfect environment for M and A. However, it's very difficult to do meaningful M and A unless what you have is fundamentally extremely centralized. So I think we'll see some and we have seen some, but they were very new projects who didn't have really much to go on and they were mostly marketing exercises. So I don't know if you'll see that much of that, but I think we'll see consolidation, activity of activity on a few chains. There's very little activity today on Blockchain that is not, you know, in, in some sense, subsidized.

[Jen Senassi]

You know, I've been asking almost all the guests who join this show throughout December this question, and I will ask you the same. We've been talking about tokenized commodities, but as you look towards 2025, what narrative do you think is going to drive this industry next year.

[Arthur Brightman]

That's very interesting. And first of all, I'm going to deplore the fact that the industry is driven by narrative. I think this industry should be driven by reality and not by narrative. However, I can answer that. And sadly, I think AI and AI Agent is going to be a great narrative. And I think it's going to be a lot of shit, but it's definitely going to be a narrative like people are going. Because, you know, ultimately I think a lot of people treat tokens as like a proxy way of getting some exposure to technology, and it doesn't really do that, but there's a lot of marketing, you know, wink, wink, saying that it does, even if it doesn't. So I think we'll see. A little bit of the meme phenomenon I think is going to, you know, it's not going to go away. You know, it's been there for years. But I think it's going to bait a little bit and people are going to try this type of. I think AI is going to be a big component. At the end of the day, the thing is, the best narrative to have is a narrative that's never going to be realized. So if you want to optimize your narrative, you should do like, we're going to be the blockchain for nuclear fusion, and then you can not do anything for 10 years. And it's like, well, fusion is coming any minute now. Or you could say you're going to be blockchain for quantum computing. And then you find for a long time, and people get excited about that because they feel like, oh, it's going to be the blockchain for quantum computing, the blockchain for longevity. In some sense, you want to do the blockchain for commodity trading. It's terrible because you actually have to succeed. You actually have to do the thing. Otherwise people are going to say, well, that didn't work. Look, but if it works, then of course that's a lot stronger than just telling people that maybe someday something's going to happen. So, yeah, that's the sad reality of our industry.

[Jen Senassi]

Is Tezos going to be the blockchain for commodities trading?

[Arthur Brightman]

I hope so. I hope so. I think it's a. I think that's a real use case. I think that's a very meaningful thing. We are lacking electronic markets for spot trading in the world right now, and that's something that can be done.

[Jen Senassi]

Arthur, thank you so much for joining. Markets Daily. Today was a pleasure, and I wish you the best December month.

[Arthur Brightman]

Thank you. Likewise.

[Jen Senassi]

And thank you to our audience for listening to Markets Daily. If you enjoy listening to this podcast, subscribe to the Coindesk Podcast Network that is available on all podcast platforms. If you prefer watching the show, we are on YouTube. We're on CoinDesk.com subscribe, give us a thumbs up and we'll see you tomorrow.