Metals.io Issues 25,000 Copper Tokens Backed by 25 Tonnes in Hamburg
Metals.io has issued 25,000 xCu tokens, each representing one kilogram of refined copper stored in a Hamburg warehouse, for a total of 25 tonnes. The company says it hopes to grow the offering to millions of dollars over the next year, contingent on investor demand.
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The Initial Issuance
Metals.io has issued 25,000 tokens called xCu, with each token representing one kilogram of refined copper held in a warehouse in Hamburg, Germany. The batch totals 25 tonnes. CoinDesk valued the copper backing the launch at $366,000, while Crypto Briefing's coverage did not state a dollar figure.
Custody and Ownership Structure
According to the launch research, holders own the metal as beneficial owners: a blockchain record tracks the economic claim, and a custodian holds the physical copper. Metals.io uses bonded warehouses in the Netherlands and Germany, with this first batch stored in Hamburg. Archax is named as custody and compliance partner, and the structure is designed so the metal is not rehypothecated, meaning it is not lent out or pledged to multiple parties.
The token runs on Etherlink, an application layer built on the Tezos blockchain, which allows trading outside traditional exchange hours.
Metals.io's Tokenized Commodity Lineup
Copper is not the company's first physically backed product. The platform now lists six tokenized metal products: xU3O8 for uranium, VNXAU for gold, xCo for cobalt, xNi for nickel, RARE as a strategic metals basket, and xCu for copper. The launch research describes xCu as the first physically backed, spot-price copper investment product aimed at retail investors.
Demand Context and Scale
The launch materials cite forecasts of a 50% increase in copper demand by 2040, driven by electric vehicles, renewable energy, AI data centers and electrification. One large AI data center could require up to 50,000 tonnes of copper, and data-center copper demand overall is projected at 1.1 million tonnes annually by 2030. Those figures are from the company's research and have not been independently verified here. The 50,000-tonne facility estimate alone is 2,000 times the 25 tonnes backing the full xCu issuance.
Open Questions
Metals.io hopes to expand its copper offering to millions of dollars within a year, but that depends on investor demand, so the target is not assured. Token holders rely on the custodian, warehouse operator and legal structure performing as described. Blockchain records can confirm token ownership but cannot independently inspect the Hamburg warehouse. Early trading activity for xCu on Etherlink will be the first public indicator of demand.
Why It Matters
For Traders
Trading volume for xCu on Etherlink in the coming days will show whether the 25,000-token issuance has real secondary demand or stays thin.
For Investors
Tokenized commodities remain a small niche, and this issuance is too small to alter copper market structure, so it is best tracked as a test of retail demand for physically backed products.
For Builders
The design relies on custodian attestations and legal beneficial-ownership structures rather than on-chain proof of the metal, a model builders should scrutinize when integrating real-world asset backing.
This article is for information only and is not financial advice. Read the full disclaimer.
