As gold and silver continue to reach new all-time highs, investor attention is gradually shifting toward smaller-cap industrial metals — with copper emerging as a key candidate. Amid this shift, blockchain technology is expected to play a critical role in channeling capital into the crypto ecosystem through the tokenization of real-world assets (RWAs).
Copper, often described as the backbone of modern electrification, is increasingly being viewed not only as an industrial commodity but also as a strategic asset. Several indicators now suggest that tokenized copper could experience significant growth as early as 2026.
Copper: The Rising Star Among Industrial Metals
Recent market data suggests that copper may soon enter a strong long-term growth cycle similar to what silver has experienced in previous years. However, unlike short-term commodity rallies, the current copper narrative is driven by deep structural imbalances rather than cyclical price movements.
According to Toto Finance, an institutional-grade commodity tokenization platform, global copper demand is projected to reach approximately 42 million tons by 2040. In contrast, global supply is expected to peak around 2030, before entering a prolonged decline.
Their “Copper Supply and Demand Outlook (2025–2040)” highlights a widening gap between consumption and production. While demand steadily rises toward the 40-million-ton mark, supply is forecast to peak at just 28–30 million tons, setting the stage for a long-term supply deficit.
This growing imbalance reinforces copper’s status as a strategic resource — one that is increasingly difficult to extract, replace, or substitute.
“This is not a typical commodity cycle but a structural imbalance. As copper becomes a strategic resource, tokenization will redefine access, ownership, and liquidity,” Toto Finance noted.
A Structural Copper Shortage Is Already Forming
Market analysts warn that the copper shortage is no longer a distant concern. According to Mike Investing, the amount of copper required over the next 18 years could match the total volume mined over the past 10,000 years combined.
He further suggests that copper prices could potentially increase two to five times within a relatively short time frame if supply constraints intensify faster than expected.
Several factors are contributing to this tightening supply:
New copper mining projects typically require 15–17 years to reach production.
Ore grades are declining across major mining regions.
Many large, legacy copper mines are approaching depletion or closure.
These structural challenges significantly limit the industry’s ability to respond quickly to rising demand.
AI and Electrification: The Primary Demand Drivers
Two megatrends are accelerating copper demand at an unprecedented pace: artificial intelligence (AI) and global electrification.
According to Katusa Research, the expansion of AI infrastructure alone could consume around 400,000 tons of copper per year through 2035, driven largely by the construction of data centers, power grids, and cooling systems.
Electric vehicles (EVs) represent another major demand catalyst. On average, EVs require three times more copper than traditional internal combustion engine vehicles. This includes copper used in batteries, wiring harnesses, charging infrastructure, and electric motors.
Additionally, modern defense systems, renewable energy installations, and drone technologies are placing further strain on global copper supply, increasing its strategic importance worldwide.
Early Signals from the Crypto Market
While access to tokenized copper and copper-related RWAs remains limited for crypto-native investors, recent developments suggest growing interest.
Tokenized versions of gold and silver have already demonstrated increasing on-chain demand, providing a potential roadmap for copper-based assets.
One notable example is COPXON, a tokenized version of the Global X Copper Miners ETF launched by Ondo. The asset reportedly reached $3 million in market capitalization within its first week after launch in January.
Meanwhile, Remora Markets, a Solana-based platform for tokenized equities, reported revenue growth exceeding $110 million, driven largely by demand for tokenized NASDAQ stocks and metal-linked assets.
The total value of Copper rStock (CPERr) on Remora Markets also surged in late January. Although still relatively small in scale, these developments may represent early signs of growing crypto investor interest in industrial metals.
Asset Tokenization: A Major Narrative for 2026
Many industry observers believe that asset tokenization will emerge as one of the dominant crypto narratives in 2026. By bringing real-world commodities on-chain, tokenization enhances accessibility, transparency, and liquidity — particularly for traditionally illiquid assets like metals.
Tokenized copper could serve as a bridge between traditional commodity markets and decentralized finance, opening new possibilities for traders, institutions, and builders alike.
Rather than replacing physical markets, tokenization offers a complementary layer that allows global participation without the friction of storage, logistics, or custody.
Conclusion
Copper’s rising strategic importance, combined with long-term supply constraints and accelerating demand from AI and electrification, is reshaping how investors view the metal. As blockchain adoption continues to expand into real-world assets, tokenized copper may become a key component of the next crypto growth cycle.
While still in its early stages, the groundwork for this transition appears to be forming — and 2026 could mark a turning point.
Disclaimer
This article is for informational and educational purposes only and does not constitute financial or investment advice. Readers are advised to conduct their own research and consult qualified professionals before making any investment decisions. The author bears no responsibility for any financial losses incurred.
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