A small first batch
Metals.io has issued 25,000 copper tokens called xCu, each backed by one kilogram of refined copper stored in a warehouse in Hamburg, Germany. The initial batch is worth about $366,000. That is a modest start for a company that wants to tokenize millions of dollars of copper over the next year. Metals.io already offers tokenized uranium, gold, cobalt and nickel.
Ben Elvidge, head of alternative assets at London-based Trilitech, said the company is starting small on purpose. Trilitech is the Tezos development company behind Metals.io’s trading platform and technical infrastructure. Elvidge also leads Metals.io. He said the goal is to test the market and build sustainably rather than rush a large launch.
Physical metal, not mining exposure
xCu differs from buying shares in copper miners or futures contracts. Each token represents ownership of physical refined copper already in storage. Holders can trade the tokens around the clock with no minimum investment, according to Elvidge. They can also redeem tokens for metal if they have a suitable storage account and pass identity and anti-money laundering checks. The minimum physical redemption is one sheet of refined copper, which weighs about 125 kilograms.
Archax, a regulated digital asset platform based in the UK with operations in the US, EU and UAE, acts as trustee. It checks that the copper held matches the circulating token supply. That verification step matters because tokenized commodity products depend on trust in custody and auditing.
Demand outlook draws attention
Copper demand is expected to rise as power grids, electric vehicles and AI data centers expand. S&P Global projects global demand could grow 50% by 2040. Those projections help explain why metals tokenization is drawing interest, though copper remains a small part of blockchain-based investment products. Tether’s XAUT and Paxos’ PAXG already offer tokens backed by physical gold. Metals.io is betting that copper can follow a similar path.
The company’s existing products show mixed traction. Uranium leads with a market capitalization of about $9.2 million, followed by gold at $4.1 million. Copper’s initial market value already exceeds the combined value of Metals.io’s nickel, cobalt and rare-earth products. Still, the pilot is far smaller than some resource-backed projects. Bridgetower’s $11 billion Arizona copper-gold tokenization project involves mineral resources that have not yet been extracted.
For now, Metals.io’s copper token is a test of whether investors want direct exposure to stored metal, not just mining claims or futures. The answer will depend on trading interest, redemption demand and confidence in the trustee checks. It is a small market, and perhaps a cautious one. But the company is clearly trying to learn before it grows.
