How physical uranium is custodied and verified
Physical uranium is held at conversion facilities. How uranium custody works, who holds what, and how proof of reserves verifies the backing.
An institution that holds a claim on physical uranium needs two things confirmed. The uranium has to be held securely, and the claim has to be backed by it. Custody answers where the material is and who controls it. Proof of reserves answers whether every claim corresponds to audited material.
Where physical uranium is held
Physical uranium is held at conversion facilities. Conversion capacity is concentrated in a small number of sites, so the conversion facility account is where the market holds material and transfers title. Ownership moves between accounts by book transfer, without shipping the U₃O₈, in the same way many commodity markets settle at a licensed warehouse.
A sound custody structure is also bankruptcy-remote. The custodied uranium is legally separated from the operating business, so it is not exposed if that business fails.
How a book transfer works
A book transfer moves ownership of uranium without moving the uranium. The conversion facility keeps an account for each holder, recording the quantity of U₃O₈ credited to it. When a physical settlement occurs, the seller instructs the facility to debit its account and credit the buyer's, and the facility confirms the transfer once both sides' instructions match.
The material itself stays in storage throughout. This is why holding uranium at a conversion facility is the market's standard. The uranium sits where it will eventually be processed, and ownership can change many times before it is.
Custody of the digital receipt
When physical uranium is represented as a digital warehouse receipt, the receipt itself also has to be held in custody. Custody of the uranium and custody of the receipt are separate.
- The uranium. Physical U₃O₈ is held in a bankruptcy-remote structure at ConverDyn in Metropolis, Illinois, an accredited U.S. conversion facility.
- The receipt. Digital warehouse receipts are custodied by Anchorage Digital, an OCC-chartered bank.
Uranium Digital itself does not take custody of customer assets or process fiat currency.
How the backing is verified
Custody establishes that the material is held. Verification establishes that the receipts are fully backed. Uranium Digital uses three layers of verification.
- Independent audit. The Network Firm, an independent accounting firm, audits physical U₃O₈ reserves 1:1 against digital warehouse receipts outstanding, under AICPA attestation standards.
- Proof of reserves. Chainlink proof of reserves publishes the reserve figure as a public data feed, so the backing can be checked independently.
- Monthly attestations. A third-party attestation report is published each month, comparing physical U₃O₈ reserves against receipts outstanding.
Each receipt is backed 1:1 by physical U₃O₈, with no fractional reserve. See proof of reserves for the full verification structure.
FAQ
Physical uranium is stored at conversion facilities, which serve as the custody points of the market because conversion capacity is concentrated in a few sites. Ownership transfers between accounts by book transfer rather than by moving the material. On Uranium Digital, physical U₃O₈ is held at ConverDyn in Metropolis, Illinois.
Uranium custody is verified through independent audit and published proof of reserves. On Uranium Digital, The Network Firm audits physical U₃O₈ reserves 1:1 against digital warehouse receipts outstanding, Chainlink proof of reserves publishes the reserve figure as a public data feed, and a third-party attestation report is published each month.
A book transfer moves ownership of uranium between two accounts at a conversion facility without physically moving the material. The seller instructs the facility to debit its account, the buyer's account is credited, and the facility confirms the transfer. Most physical uranium trades settle this way.
Physical U₃O₈ is held in a bankruptcy-remote structure at ConverDyn, an accredited U.S. conversion facility. Digital warehouse receipts are custodied by Anchorage Digital, an OCC-chartered bank. Uranium Digital itself does not take custody of customer assets or process fiat currency.