The metal powering AI data centers has jumped over 60% in a year, and tokenized copper is bringing the rally to crypto markets
Copper futures have broken above $6.60 per pound, setting fresh record highs as a weakening US dollar and surging demand from AI data centers converge to create a supply squeeze that shows no signs of easing.
A year ago, copper was trading around $4.10 per pound. That means the metal has climbed roughly 60% in twelve months.
AI’s insatiable appetite for copper #
Every data center sprouting up to train and run AI models requires massive amounts of the metal for wiring, transformers, power delivery systems, and cooling infrastructure.
Goldman Sachs has projected a 165% increase in data center power demand by 2030. That figure alone would be enough to tighten copper markets significantly, but it arrives against a backdrop of supply constraints that were already squeezing inventories before the AI boom kicked into high gear.
Lower ore grades at existing mines and geographic concentration of production in a handful of regions have made it increasingly difficult for supply to keep pace.
Copper is priced in US dollars on global exchanges, so when the greenback falls, the metal becomes cheaper for buyers holding other currencies. That tends to boost demand and push prices higher, which is exactly what’s happening now.
Tokenized copper enters the chat #
Tokenized RWAs allow physical commodity reserves to be represented as digital tokens on a blockchain. Instead of buying copper futures through a brokerage or storing physical metal in a warehouse, investors can hold a token that represents verified copper reserves, trade it around the clock, and own fractional amounts.
Cireta’s Kinusi Copper Token, known as KCT, is one example. It’s backed by verified copper reserves valued at $1.5 billion. The model lets retail and institutional investors gain copper exposure without the traditional barriers of commodity investing, like storage costs, minimum contract sizes, or exchange-hours-only trading.
What this means for investors #
The risk with RWAs comes down to trust in the backing. A token is only as good as the reserves behind it and the audit trail proving those reserves exist. Investors should scrutinize the verification mechanisms, custodial arrangements, and redemption processes before treating any copper token as equivalent to owning the commodity itself.
The crypto custody firm Copper, which operates at copper.co and shares a name with the commodity but not a business model, is reportedly seeking a buyer at a valuation of around $500 million.
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