Toto Finance aims to bring $5B in copper onchain as AI demand surges

Toto Finance is developing a tokenized copper marketplace aimed at connecting mining companies directly with investors and industrial buyers as rising demand from AI data centers and power grids puts pressure on global copper supplies.

The company is targeting $5 billion in tokenized copper over time, founder and chairman Monty Metzger told Crypto Briefing. Its planned CuTT token would represent ownership of physical copper stored in US warehouses, allowing investors to trade the metal digitally while industrial buyers retain the option of physical delivery.

The expansion comes as the International Energy Agency projects a 25% copper supply shortfall by 2035, based on existing mines and announced projects. Copper is essential to AI data center power distribution, transformers and cooling infrastructure, as well as electric vehicles and electricity grids.

Under Toto Finance’s proposed model, each CuTT token would represent one pound of verified COMEX Grade 1 copper cathodes. Investors would be able to trade the tokens around the clock, while industrial customers could settle purchases using US dollar stablecoins and redeem physical copper in standardized 25,000 pound lots.

Metzger said the model could give miners an alternative to traditional financing arrangements by connecting them with global capital and industrial buyers without requiring additional debt or equity issuance.

“Tokenization won’t make geology faster. A new copper mine still takes more than a decade from discovery to production,” Metzger said.

He argued that digital financing could instead accelerate investment in mine expansions, restarts and producers approaching commercial production, where additional capital could help increase output sooner.

Toto Finance plans to begin with existing physical copper inventory before expanding into financing tied to future mining production. The company is developing a staged US program that would scale from an initial lot to 1,000 tonnes, with a longer term target exceeding 100,000 tonnes.

Metzger said Toto Finance is in discussions with copper producers in Arizona, Nevada, Argentina and Chile. The company has also applied for US government grants to support mining finance programs in the Democratic Republic of the Congo, Zambia and Ghana.

The company has operated a marketplace for tokenized physical assets since 2023, issuing more than 45,000 assets backed by precious metals, diamonds and gemstones across multiple blockchains. 

According to Metzger, the platform has attracted more than 5,000 token holders, providing the foundation for its expansion into industrial commodities.

CuTT remains in development, with Toto Finance finalizing legal and custody arrangements intended to protect token holders in the event of warehouse or custodian failure. 

Its planned framework includes independent verification, third party audits and onchain proof of reserves. Physical redemptions would require identity verification through the company’s portal.

Toto Finance is initially developing its copper infrastructure around Ethereum, citing institutional custody, stablecoin liquidity and decentralized finance markets. Metzger said the company is also considering expansion to Polygon, Base, Arbitrum and Cardano.

The company recently proposed a 22 million ADA withdrawal from Cardano’s treasury to fund a tokenized copper reserve. Approximately two thirds of the proposed allocation would purchase physical copper, with the remainder covering technology, custody and oversight.

The Cardano Foundation voted against the proposal, and other governance participants raised concerns about fund controls and financial risks. Metzger said Toto Finance intends to revise and resubmit the proposal while pursuing opportunities with other blockchain ecosystems.

Looking ahead, Metzger said the company’s success would depend less on the number of tokens issued than on actual commodity trading activity, institutional adoption and physical copper deliveries.