CoinDesk
Metals.io has launched 25,000 xCu tokens backed by 25 tonnes of refined copper stored in Hamburg, Germany. Each token represents one kilogram of physical metal, putting the initial offering at about $366,000. Buyers can trade around the clock with no minimum investment, while physical redemption starts at 125 kilograms and requires suitable storage and identity checks.
Why it matters
Unlike copper-mining shares or futures, xCu represents ownership of refined copper already in storage. Archax, a regulated digital-asset platform, acts as trustee and checks that the warehouse supply matches the tokens in circulation. The launch extends Metals.io’s existing range of tokenized metals, which includes uranium, gold, cobalt and nickel.
Copper is drawing attention as power grids, electric vehicles and AI data centers expand. S&P Global projects global copper demand could rise 50% by 2040, giving the commodity a potentially larger role in real-world-asset tokenization. The product is distinct from projects based on unextracted mineral resources because xCu is backed by refined metal held in a warehouse.
Market impact
The initial copper offering is small compared with Metals.io’s other metal products: its uranium product has a market capitalization of about $9.2 million and gold about $4.1 million. Copper’s debut already exceeds the combined value of the company’s nickel, cobalt and rare-earth products.
Metals.io says it hopes to build its copper offering into the millions of dollars over the next year, but future issuance depends on investor demand. The launch tests whether token holders want direct, tradable exposure to stored industrial metal, beyond the better-established tokenized-gold market.
Frequently asked questions
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What does one xCu token represent?
Each xCu token represents ownership of one kilogram of refined copper stored in Hamburg, Germany.
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How much copper is needed to redeem xCu physically?
Physical redemption starts at 125 kilograms. Holders also need suitable storage and must pass identity checks.
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Who checks that xCu is backed by the copper in storage?
Archax acts as trustee and checks that the copper held matches the circulating token supply.
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How does xCu differ from copper futures or mining shares?
xCu represents ownership of refined copper already in storage, rather than exposure through a mining company or futures contract.
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What could drive demand for Metals.io's copper tokens?
Demand from power grids, electric vehicles and AI data centers is expected to support copper use. S&P Global projects global demand could rise 50% by 2040.
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