Raredex is now on the Arbitrium blockchain. This represents a major shift in accessibility to the asset class, which until now had long been reserved for institutional investors.

Raredex It is a blockchain-based platform on the Arbitrum network that allows investors to access rare earth metals. Rare earth minerals, needed for companies ranging from technology development to renewable energy, have traditionally been difficult for retail investors to access, due to high entry costs – often exceeding $10,000. Raredex solves this problem by enabling fractional ownership using blockchain-based tokenization, where each token represents one kilogram of physical metal.

Louis O'Connor, CEO of Raredex, highlighted the democratization potential, saying that "early adopters" will now have access to an asset class that has been "traditionally reserved for governments" or "wealthy, well-connected" individuals, meaning investors on a larger scale... Smaller ones can now enter the market, with much less capital.

How does Raredex work?

Raredex holds its physical metals in a bank-grade vault that it manages tradition In Germany for access to custody and availability. Investors can verify the provenance of their tokens because each one is tagged with extensive data on the source of origin. By employing blockchain technology, an immutable ownership record is created, which reduces the chances of fraud and increases transparency.

The launch of the platform comes at a time of growing interest in RWA tokens. This update comes on the back of a larger trend toward tokenization Real world origins. In 2023, the category of RWAs has grown significantly 700%achieving revenues of $860 million. According to Boston Consulting Group and ADXThe market for recoverable assets is expected to reach $16 trillion by 2030. The decentralized, tamper-resistant nature of blockchain technology will increase transparency and trust, while sharding opens new ways to access and invest in valuable assets.

There are other similar initiatives UPS Ethereum-hosted token investment fund from Asset Management and Archax's $4.8 billion money market fund on exchange XRP Ledger.

As demand for rare earth metals grows due to innovations in technology and clean energy, the Raredex platform could serve as a model for a broader wave of commodity trading on the blockchain, thus transforming investors’ interaction with physical assets.