Metals.io has launched a copper-backed digital asset, xCu, giving investors blockchain-based exposure to refined copper held in physical storage. The initial offering comprises 25,000 tokens, each representing ownership of one kilogram of copper stored in a warehouse in Hamburg, Germany.

The launch brings copper into a tokenized commodity lineup that already includes uranium, gold, cobalt, and nickel. The opening inventory consists of 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 copper that has already been mined, refined, and placed in physical storage, positioning the token as a blockchain-based alternative to conventional commodity investment products. Metals.io operates on trading technology and infrastructure developed by Trilitech, a London-based blockchain development company specializing in the Tezos ecosystem. According to Tezos's announcement of the launch, a record of who holds the tokens is maintained on Etherlink, a network built on Tezos.

Metals.io Starts With a Limited Copper Supply

The company has deliberately kept the initial copper offering small while it evaluates investor demand and the operational requirements of scaling 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, although additional token issuance will depend on market demand and the performance of the initial offering.

The gradual approach is intended to support sustainable growth rather than release a large volume of tokens before confirming sufficient investor interest. Should demand rise, Metals.io could expand the amount of physical copper represented by xCu tokens.

Investors Gain Exposure to Physical Copper

Retail investors have traditionally gained exposure to copper through futures contracts, exchange-traded products, and shares of mining companies. xCu introduces another route 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 matters because some commodity tokenization projects are connected to mineral deposits that have not yet been mined. Metals.io's copper product, by contrast, is backed by existing inventory that can be independently accounted for through its custody structure.

The platform imposes no minimum investment requirement, and token trading is available around the clock. That could give smaller investors 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, completion of identity verification and anti-money laundering checks, and fulfillment of 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. An investor holding 10 tokens would therefore have exposure to 10 kilograms of copper but would not qualify for physical delivery. With one kilogram per token, that places the practical threshold for physical delivery at roughly 125 tokens.

Archax, a regulated digital asset platform headquartered in the United Kingdom with operations across the United States, the European Union, and the United Arab Emirates, serves as trustee for the arrangement. Its responsibilities include 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 ↓

— 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. Gold is typically held as a store of value, whereas copper is consumed primarily as an industrial input in manufacturing and construction.

Rising Copper Demand Creates Growth Opportunities

Metals.io is positioning xCu within a market that could benefit from rising 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. Copper's high electrical conductivity is what makes it a core material for the wiring and electrical components those systems rely on.

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 give the company an opportunity 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.