Metals.io has introduced a copper-backed digital asset called xCu, allowing investors to gain exposure to physically stored refined copper through blockchain-based tokens. The initial offering consists of 25,000 tokens, each representing ownership of one kilogram of copper held in a warehouse in Hamburg, Germany.
The launch adds copper to the platform’s existing selection of tokenized commodities, which includes uranium, gold, cobalt, and nickel. The initial copper inventory comprises 25 metric tons of refined metal, with an estimated launch value of approximately $366,000.
Each xCu token represents a claim on one kilogram of already mined, refined, and physically stored copper, offering investors a blockchain-based alternative to conventional commodity investment products.
Metals.io is operated using trading technology and infrastructure developed by Trilitech, a London-based blockchain development company specializing in the Tezos ecosystem.
Metals.io Starts With a Limited Copper Supply
The company is initially keeping the copper offering relatively small as it evaluates investor demand and the operational requirements of expanding the product.
Ben Elvidge, head of alternative assets at Trilitech and operator of Metals.io, indicated that the company intends to develop copper into a multimillion-dollar product over the coming year. However, additional token issuance will depend on market demand and the performance of the initial offering.
The gradual approach is intended to help the company establish sustainable growth rather than introduce a large quantity of tokens before confirming sufficient investor interest.
If demand increases, Metals.io could expand the amount of physical copper represented by xCu tokens.
Investors Gain Exposure to Physical Copper
Retail investors traditionally gain exposure to copper through futures contracts, exchange-traded products, and shares of mining companies. The xCu offering introduces another approach by linking digital tokens directly to refined physical metal.
According to Elvidge, token holders own a portion of branded copper cathodes stored in Hamburg. The underlying commodity has already been extracted, processed, and refined rather than representing an estimated underground mineral resource.
The distinction is important because some commodity tokenization projects are connected to mineral deposits that have not yet been mined.
Unlike such arrangements, Metals.io’s copper product is backed by existing inventory that can be independently accounted for through its custody structure.
The platform also offers no minimum investment requirement, while token trading is available around the clock. This could provide smaller investors with access to commodity exposure without requiring them to purchase or store large quantities of physical metal themselves.
Physical Copper Redemption Has Restrictions
Although xCu represents an interest in physical copper, investors cannot automatically redeem individual tokens for delivered metal.
Physical redemption requires an appropriate storage account and completion of identity verification and anti-money laundering checks. There is also a substantial minimum delivery requirement.
A single sheet of refined copper weighs approximately 125 kilograms, which Elvidge identified as the minimum quantity for physical redemption. Consequently, an investor holding 10 tokens would have exposure to 10 kilograms of copper but would not qualify for physical delivery.
Archax, a regulated digital asset platform headquartered in the United Kingdom, serves as the trustee for the arrangement. The company operates across the United States, the European Union, and the United Arab Emirates.
Its responsibility includes verifying that the physical copper held in storage corresponds with the number of tokens issued and circulating on the platform.
Copper Joins Metals.io’s Tokenized Commodity Portfolio
Metals.io already offers several commodity-backed digital assets, with uranium and gold representing its largest products.
📖 Copper is now on-chain. But what does a copper token actually represent?
Physical metal in bonded warehouses. A record of who holds it on @etherlink, built on Tezos.
How @metalsofficial’s xCu works ↓
https://t.co/POOKHZVp7k— Tezos (@tezos) November 1, 2026
The platform’s uranium offering has a market capitalization of approximately $9.2 million, while its gold product stands at around $4.1 million. At launch, xCu’s estimated value exceeds the combined value of the platform’s nickel, cobalt, and rare-earth products.
Although physical asset tokenization is established in the gold market through products such as Tether’s XAUT and Paxos’ PAXG, blockchain-based copper investment products remain relatively uncommon.
Rising Copper Demand Creates Growth Opportunities
Metals.io is positioning xCu within a market that could benefit from increasing global demand for copper.
Electric vehicles, electricity transmission networks, renewable energy infrastructure, and artificial intelligence data centers are expected to require substantial quantities of the metal.
S&P Global has projected that global copper demand could increase by 50% by 2040, reflecting the expanding requirements of electrification and digital infrastructure.
By introducing physically backed copper tokens, Metals.io aims to connect commodity ownership with blockchain accessibility while creating another investment channel for a metal expected to play an important role in the global energy transition.
The initial 25-ton inventory will provide an opportunity for the company to assess investor participation before expanding the product. Its longer-term prospects will depend on demand, physical custody arrangements, and the broader adoption of tokenized commodities.
