Formylglycine‐generating enzyme (FGE) is an O2‐utilizing oxidase that converts specific cysteine residues of client proteins to formylglycine. We show that CuI is an integral cofactor of this enzyme and binds with high affinity (K
D=of 10−17
m) to a pair of active‐site cysteines. These findings establish FGE as a novel type of copper enzyme.