Elemental Royalty Becomes First to Pay Dividends in Tether’s Tokenized Gold XAUT

Elemental Royalty has become the first public gold company to pay dividends to its investors in Tether’s tokenized gold XAUT. Shareholders can opt for dividends in the blockchain-based gold token, getting direct ownership of physical gold through their investment in gold royalties.

Elemental Royalty Offers Tokenized Tether Gold (XAUT) Dividends Option

Elemental Royalty has announced its inaugural dividend and an option for qualifying registered shareholders to receive Tether’s tokenized gold XAUT, according to a press release on February 17.

The firm will offer shareholders an option to receive dividends in blockchain-based tokens backed by gold. This marks the first-ever gold dividend distribution by a public gold royalty company.

Shareholders opting for the new policy will receive dividends in XAUT rather than fiat money, providing direct exposure to gold prices and flexibility of digital settlement. Commenting on the board’s approval for this new dividend policy, CEO David M. Cole said:

The approval of this dividend policy marks an important milestone in Elemental’s strategic trajectory and reflects our confidence in the strength and momentum of the business. We believe this is the right time to introduce a sustainable, long-term, dividend.

The move by Elemental Royalty comes after stablecoin issuer Tether acquired one-third of the company last year. Amid rising demand for RWA tokenization, gold-backed tokens emerged as a fast-growing asset class. XAUT is pegged 1:1 to one troy ounce of physical gold held in secure vaults.

Tokenized Gold Market Value Surpasses $5 Billion

The total market for tokenized gold has surpassed $5 billion, with XAUT currently leading the sector in both volume and supply. Much of this growth has been driven by retail investors seeking exposure to gold without relying on traditional custodians or intermediaries.

Recently, crypto market maker Wintermute launched tokenized gold trading for institutions. The firm projects the tokenized gold market could reach $15 billion by 2026.

XAUT price is currently trading at $4,909, down almost 0.50% over the past 24 hours. The 24-hour low and high are $4,835.91 and $4,930.59, respectively. Trading volume jumped 75% in the last 24 hours as gold prices fell amid a strong US dollar.

In contrast, CoinGlass data showed massive buying of Tether Gold futures. At the time of writing, the total XAUT futures open interest jumped nearly 2.50% to $453.28 billion in the last 4 hours.