After a recent closed alliance between Atómico 3 together with Cardano, Zengate and Alto Grande Lithium SA, the first lithium tokenization in the world is already on the way.
Both companies have begun working on the initiative, which is expected to occur during 1Q 2025.
The project not only promises a profound economic impact, but also offers a list of benefits such as Liquidity and democratized access, risk reduction, Automation, Elimination of intermediaries, among other novelties.
Pablo Rutigliano, CEO of Atomico3 stated. “The project is ambitious and disruptive. Through blockchain technology, mineral property rights will be converted into digital tokens, opening a path towards transparency, liquidity and democratization of the mining industry.”
For his part, Dan Friedman, head of ZenGate, highlighted the impact of this agreement in the consolidation of a new digital economy in the country. “Argentina is positioned as a global leader in the development of initiatives that connect technological innovation and natural resources,” said Friedman.
What is lithium tokenization?
Lithium tokenization is a process by which physical assets, such as mined or industrially processed lithium, are digitally represented on a blockchain using tokens.
This means that, instead of handling the physical asset directly, investors and companies interact with its digital version, facilitating trade, liquidity and investment in this strategic material.
Tokenization of lithium allows investors to buy and sell fractional shares of the material without needing to physically own large amounts of lithium. This not only democratizes access to this resource, but also improves liquidity, facilitates international trade and allows for more secure and transparent transactions through blockchain technology.
By representing lithium on the blockchain, the traceability and authenticity of the material is guaranteed, reducing the risk of fraud and ensuring ethical and environmental standards in its extraction and processing.
On the other hand, tokenization facilitates collaboration between mining companies, governments and technology companies, encouraging investments and alliances to develop more efficient and sustainable projects. In a global market increasingly focused on renewable energy and clean technologies, lithium tokenization is not only an economic opportunity, but also a step towards more transparent and environmentally friendly industrial practices.
The first lithium tokenization worldwide, driven by the agreement between Atómico 3 and Alto Grande Lithium SA, marks the beginning of a significant transformation in the mining and technology industry.
This initiative not only represents an economic advance, but also positions Argentina as a pioneer in the convergence between natural resources and blockchain technology.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
