Raredex offers rare earth metal exposure for investors on Arbitrum

Raredex is now reside on the Arbittrium blockchain. This marks a big shift within the accessibility of an asset class that has lengthy been the protect of institutional traders.

Raredex is a blockchain-based platform on the Arbitrum community that offers traders entry to uncommon earth metals. Uncommon earth metals, that are wanted for companies starting from expertise improvement to renewable power, have historically been tough to entry for personal traders, hampered by excessive entry prices – usually above $10,000. Raredex solves this by enabling fractional possession utilizing blockchain-based tokenization, the place every token represents one kilogram of bodily metallic.

Louis O’Connor, CEO of Raredex, highlighted the democratization potential, saying that “Early adopters” will now have entry to an asset class that has “usually been reserved for governments” or the “well-connected, rich” people. that traders can now enter the market on a smaller scale, with a lot much less capital required.

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How does Raredex work?

Raredex shops its bodily metals in a bank-grade vault operated by Tradium in Germany for entry to custody and availability. Buyers can confirm the provenance of their tokens as they’re all tagged with intensive provenance information. Utilizing blockchain expertise creates an immutable file of possession, decreasing the danger of fraud and growing transparency.

The launch of the platform comes at a time of elevated curiosity in RWA tokenization. This replace comes amid a bigger development to tokenize real-world property. By 2023, the category of RWAs had grown 700%, producing $860 million in income. In accordance with Boston Consulting Group and ADDX, RWAs are anticipated to be a $16 trillion market by 2030. The decentralized, tamper-resistant nature of blockchain will improve transparency and belief, whereas fragmentation opens up new methods to entry and put money into priceless property.

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The chart estimates that the tokenization of world illiquid property will attain $16.1 trillion by 2030, representing 10% of world GDP. This reveals that Raredex, working within the RWA class, is prepared for development. Sourced from ADDX by crypto.information.

Different related initiatives embrace UBS Asset Administration’s Ethereum-hosted tokenized funding fund and Archax’s $4.8 billion cash market fund on the XRP Ledger.

As there’s a rising demand for uncommon earths attributable to improvements in expertise and clear power, Raredex’s platform may very well be a mannequin for a broader wave of commodity buying and selling on the blockchain, remodeling how traders work together with bodily property.

Learn extra: Constancy Digital Property: Tokenization, Bitcoin Nation State and Extra in 2025