Metals.io has issued 25,000 copper tokens backed by 25 tonnes of physical copper stored in a warehouse in Hamburg, Germany, CoinDesk reported on November 2. Each token, known as xCu, is backed by one kilogram of refined copper.
Tokenized copper concept (Credits: CoinDesk)
The initial batch is worth about $366,000, a modest start for a company that says it hopes to grow its copper offering to millions of dollars over the next year if investor demand holds up. The platform already lists tokenized uranium, gold, cobalt and nickel, making copper its sixth asset — with copper demand forecast to rise as much as 50% by 2040 on the back of power grids, electric vehicles and AI data centers.
How Metals.io’s xCu copper tokens work
Unlike investments in copper mining companies or futures contracts, xCu gives buyers direct ownership of physical copper already held in storage, according to Ben Elvidge, head of alternative assets at Trilitech, the Tezos development company behind Metals.io’s trading platform and technical infrastructure.
“An xCu holder owns a portion of branded copper cathodes located in Hamburg, Germany,” Elvidge told CoinDesk. “This is real, physical, refined copper, not unmined copper or concentrate still in the ground.” The tokens can be traded around the clock with no minimum investment, and Archax, a regulated digital-asset platform based in the U.K., acts as trustee, verifying that the copper held matches the circulating token supply.
Physical redemption comes with conditions
Holders can redeem tokens for physical copper, but only in bulk: each sheet of refined copper weighs about 125 kilograms, making that the minimum redeemable amount. Redemption also requires a suitable storage account and passing identity and anti-money-laundering checks.
Analysts note the risks too: copper prices can fall if economic activity slows or supply improves, and token holders face custody, liquidity and smart-contract risks. Metals.io itself says there is no formal peg to spot prices, with market makers and arbitrageurs expected to keep the token’s price broadly aligned.
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Source: CoinDesk — read the full story there.
