Metals.io has launched a copper-backed digital asset offering tied to 25 tonnes of refined metal stored in Hamburg, Germany. The initial supply is valued at approximately $366,000, with the company aiming to develop a broader market for buying and trading physical commodities through blockchain-based tokens.
The company issued 25,000 tokens under the name xCu, each representing one kilogram of refined copper. Metals.io is taking a cautious approach to the rollout, but it hopes to grow the value of its copper inventory into the millions of dollars over the next year.
“We’d like to reach the millions of dollars, but we’re deliberately starting small to test the water and build sustainably,” said Ben Elvidge, head of alternative assets at Trilitech. The London-based Tezos development firm provides the technology and trading infrastructure for Metals.io, which Elvidge also leads.
Metals.io has previously introduced tokenized products linked to uranium, gold, cobalt and nickel. Its latest offering gives investors access to copper that has already been refined and stored, rather than indirect exposure through mining stocks or futures contracts. Elvidge said xCu can be traded around the clock and does not require investors to meet a minimum purchase threshold.
The launch comes as forecasts point to rising copper consumption, driven by expanding power networks, electric vehicle production and AI data center construction. S&P Global expects worldwide demand for the metal to increase by 50% by 2040.
According to Elvidge, each token represents a fractional interest in branded copper cathodes stored in Hamburg. He said the product is backed by tangible, refined metal, distinguishing it from tokens linked to undeveloped mineral deposits or copper concentrate that has not undergone processing.
Investors can redeem their holdings for physical copper if they maintain an eligible storage account and complete identity verification and anti-money laundering (AML) checks. However, the process requires a minimum redemption of about 125 kilograms, roughly the weight of a single refined copper sheet.
Archax, a U.K.-regulated digital asset platform with a presence in the U.S., EU and UAE, has taken on the role of trustee. It also monitors the underlying reserves to ensure the amount of copper in storage matches the number of xCu tokens in circulation.
The copper product joins five other tokenized metals offerings already available through Metals.io. Uranium currently leads with a market capitalization of approximately $9.2 million, followed by gold at around $4.1 million. At launch, copper’s market value is higher than the combined valuations of the platform’s nickel, cobalt and rare-earth products.
While blockchain-based exposure to physical commodities is already established in the gold market, copper remains a relatively underdeveloped segment. Tether’s XAUT and Paxos’ PAXG are among the existing tokens backed by physical gold.
Metals.io’s approach also contrasts with Bridgetower’s proposed $11 billion copper-gold tokenization project in Arizona. That initiative involves mineral resources that are still underground, while xCu is backed by copper that has already been extracted, refined and placed in storage.
Elvidge said Metals.io will decide how much additional copper to tokenize according to investor interest and demand for the product.
