Metals.io Launches Copper-Backed Tokens Representing 25 Tonnes of Physical Metal

Metals.io is beginning with approximately $366,000 worth of copper held in Germany as it looks to develop an onchain market where investors can own and trade physical metals.

The company, which has previously introduced tokenized products backed by uranium, gold, cobalt and nickel, is now expanding into copper with an initial supply of 25 tonnes stored in a Hamburg warehouse.

Metals.io has issued 25,000 copper-backed tokens, called xCu, with each token representing one kilogram of refined copper. The first issuance is valued at roughly $366,000. The company plans to expand the offering to millions of dollars in copper over the coming 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 responsible for the trading platform and technical infrastructure behind Metals.io. Elvidge also leads the Metals.io project.

Unlike buying shares in copper mining companies or trading futures, xCu provides investors with exposure to physical copper that has already been refined and placed in storage. According to Elvidge, the tokens can be traded at any time, with no minimum investment requirement.

Demand for copper is forecast to increase as electricity networks, electric vehicles and AI data centers continue to expand. S&P Global estimates that worldwide copper demand could climb 50% by 2040.

“An xCu holder owns a portion of branded copper cathodes located in Hamburg, Germany,” Elvidge said. He emphasized that the product represents actual refined copper rather than unmined deposits or raw concentrate still underground.

Investors can exchange their tokens for physical copper, although redemption requires an appropriate storage account and completion of identity verification and anti-money laundering (AML) checks.

Each refined copper sheet weighs around 125 kilograms, meaning investors must hold enough tokens to redeem at least that quantity of metal, Elvidge explained.

Archax, a U.K.-regulated digital asset platform operating across the U.S., European Union and United Arab Emirates, serves as trustee for the arrangement. It also verifies that the physical copper held in storage corresponds with the number of tokens in circulation.

Metals.io already offers five other tokenized metals products on its platform. Uranium is the largest by market capitalization, at approximately $9.2 million, followed by gold at $4.1 million. The initial valuation of the copper offering is already higher than the combined market value of the company’s nickel, cobalt and rare-earth products.

Tokenized metals have an established presence in the digital asset market, particularly through gold-backed products such as Tether’s XAUT and Paxos’ PAXG. However, copper remains a relatively small segment of blockchain-based investment products.

The Metals.io launch also differs from Bridgetower’s proposed $11 billion copper-gold tokenization initiative in Arizona, which is tied to mineral resources that have not yet been extracted. Metals.io’s tokens, by contrast, are backed by refined copper already held in a warehouse.

Elvidge said the scale of future token issuance will depend on investor demand for the product.

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