Raredex.io has launched a new live exchange on the Arbitrum blockchain, allowing investors to trade tokenized rare earth and technology metals. Traditionally, trading is limited to institutional investors and high-net-worth individuals, but this marks a significant step in expanding access to rare earth metal investments. Raredex offers incremental ownership opportunities, enabling smaller-scale investors to participate in the rare earth metals market, with the tokenization fully facilitated by the blockchain. The platform tokenizes rare earth metals, with each token representing one kilogram of physical metal. These metals are stored in a secure, bank-grade vault, ensuring the safety and authenticity of assets. Comprehensive source-of-origin data accompanies each token and, as a result, provides investors with traceable ownership. Raredex.io Exchange for Tokenized Rare Earth Metals: Could This Be the Next Gold on the Blockchain? Historically, investment in rare earth metals has been constrained by high entry costs, with minimum orders typically starting at $10,000 for single types of metals. The prices for rare earth elements have fluctuated considerably. For instance, between 2009 and 2011, China’s monopoly on rare earth production allowed it to raise prices dramatically. This led to a major decline in output from other countries, as they could not compete with the low “China price.” Fast-forward to 2023, the worldwide production of rare earth metals reached 350,000 metric tons , a significant increase from the 190,000 metric tons produced in 2018. Source: Eurostat In the EU alone, imports of rare earth elements totaled 18,300 tonnes valued at €123.6 million in 2023. Raredex.io aims to eliminate this barrier by offering fractional ownership through tokenized assets. This approach opens the rare earth metals market to a broader range of investors and provides exposure to a previously inaccessible asset class. The exchange’s tokenomics framework allows investors to purchase metal tokens in smaller quantities. Moreover, according to a statement sent to Cryptonews , Louis O’Connor, CEO of Raredex, said: “Early adopters will have a seat at a table normally reserved for governments of the well-connected wealthy.” Additionally, token holders gain ownership through the platform’s community initiatives and the opportunity to engage directly with industry experts. Also, all tokenized metals are stored in Tradium’s bank-grade vault in Germany, ensuring their physical availability. Each token is backed by detailed supply chain data, allowing investors to verify the origin and authenticity of the metals they hold. Blockchain technology provides an immutable ledger, safeguarding ownership records and minimizing the risk of fraud. Growing Interest in Real-World Asset Tokenization A broader surge in tokenization has spurred additional experiments across the crypto space. Coinbase hinted at potential tokenized shares of its stock (COIN) on Base , its Ethereum layer-2 network. @Coinbase is exploring the possibility of offering tokenized shares of its stock, COIN, to U.S. users via Base, its Ethereum layer-2 network. #Coinbase #Base https://t.co/sQjhvprNeC — Cryptonews.com (@cryptonews) January 4, 2025 Non-U.S. users already see such offerings on certain protocols, although regulatory uncertainty in the U.S. continues to create hurdles. Meanwhile, UBS Asset Management announced its own tokenized investment fund , uMINT, hosted on Ethereum’s blockchain. Archax, a UK FCA-regulated crypto exchange, has also taken part by partnering with Ripple to launch a tokenized $4.8 billion money market fund on the XRP Ledger. The exploration by these companies reflects the broader trend of tokenizing real-world assets (RWAs), a market forecasted to reach $16 trillion by 2030 through the convergence of traditional finance and blockchain technology. The post Raredex.io Launches Live Exchange for Tokenized Rare Earth Metals on Arbitrum appeared first on Cryptonews .
