Metals.io Launches 25,000 Copper Tokens Backed by Physical Metal in Germany
Metals.io has launched 25,000 blockchain-based copper tokens backed by 25 tonnes of refined metal stored in Hamburg, Germany, as the company expands its range of tokenized commodities. The initial batch, known as xCu, is valued at approximately $366,000, with each token representing one kilogram of physical copper.
The launch marks an early step in Metals.io's effort to develop a larger market for tokenized industrial metals. The company aims to reach millions of dollars in copper token value over the next year, but is starting with a smaller issuance to test demand and support sustainable growth.
“We’d like to reach the millions of dollars, but we’re deliberately starting small to test the water and build sustainably,” said Ben Elvidge, head of alternative assets at Trilitech, the London-based Tezos development company responsible for Metals.io's trading platform and technical infrastructure. Elvidge also leads Metals.io.
How Metals.io Copper Tokens Work
Unlike copper-related investments tied to mining companies or futures contracts, xCu represents ownership of refined copper that has already been produced and placed in storage. According to Elvidge, token holders own a portion of branded copper cathodes held in Hamburg rather than a claim on copper that remains underground or has yet to be refined.
The tokens can be traded around the clock without a minimum investment, Elvidge told CoinDesk. Holders can also redeem their tokens for physical copper, subject to having an appropriate storage account and completing identity verification and anti-money laundering (AML) checks.
Physical redemption has a higher threshold than the one-kilogram token denomination. Each sheet of refined copper weighs approximately 125 kilograms, making that the minimum amount investors can redeem in physical form, Elvidge said.
Archax, a regulated digital asset platform based in the United Kingdom with a presence in the United States, European Union and United Arab Emirates, serves as trustee. Its role includes checking that the physical copper held in storage corresponds to the number of tokens in circulation.
Metals.io Expands Its Tokenized Commodities Portfolio
Copper is the latest addition to a platform that already offers five other tokenized metals products. Uranium is the largest by market capitalization, at approximately $9.2 million, followed by gold at $4.1 million.
The initial copper issuance is already valued above the combined market value of the platform's nickel, cobalt and rare-earth products, according to the figures reported for the launch.
The expansion comes as copper attracts attention because of its role in electricity networks, electric vehicles and artificial intelligence data centers. S&P Global projects that global copper demand could increase by 50% by 2040, reflecting anticipated growth across these sectors.
Copper Tokenization Remains a Smaller Market
Blockchain-based commodity tokens are already established in the gold market. Tether's XAUT and Paxos' PAXG are examples of digital tokens backed by physical gold. Copper, however, remains a much smaller segment of the tokenized investment market.
The Metals.io product also differs from Bridgetower's announced $11 billion copper-gold tokenization project in Arizona. That project involves mineral resources that have not yet been extracted, whereas xCu is backed by refined copper already held in a German warehouse.
Metals.io's initial 25-tonne issuance provides a relatively small entry into the copper market, with the company indicating that it intends to expand gradually. The source material does not specify a timetable for additional issuances or confirm how much copper the platform will ultimately tokenize.
source: coindesk
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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