Elemental Royalty offers dividends in Tether’s XAUT token, backed 1:1 by physical gold, following Tether’s one-third stake acquisition.
Elemental Royalty has announced that shareholders will have the option to receive dividends in Tether’s tokenized gold, XAUT.
The company stated that this makes it the first public gold royalty firm to offer a dividend linked directly to a blockchain-based gold token.
Dividend Structure and Shareholder Option
In a press release dated February 17, Elemental Royalty confirmed the launch of its inaugural dividend policy.
Qualifying registered shareholders may elect to receive their dividend payments in XAUT instead of traditional fiat currency.
XAUT is a digital asset backed 1:1 by one troy ounce of physical gold stored in secure vaults.
By selecting this option, shareholders gain direct exposure to gold ownership through blockchain settlement while maintaining their equity position in the company.
Chief Executive Officer David M. Cole addressed the board’s approval of the policy.
He 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.”
He added that the company believes it is the right time to introduce a sustainable, long-term dividend framework.
Tether Investment and RWA Tokenization Growth
The dividend announcement follows Tether’s acquisition of roughly one-third of Elemental Royalty last year.
That investment created a closer alignment between the gold royalty firm and the issuer of XAUT.
Under the new structure, shareholders who choose XAUT will receive blockchain-based tokens rather than cash payments.
The company said this provides flexibility, digital settlement efficiency, and direct linkage to gold price movements.
The broader market for real-world asset tokenization has expanded in recent years.
Gold-backed tokens have attracted retail and institutional interest as investors seek commodity exposure without relying on traditional custodians.
Related Reading: Banks Risk Fueling Tether’s Grip, Blocking Stablecoin Rewards
Tokenized Gold Market and Trading Data
The total tokenized gold market has now surpassed $5 billion in value.
XAUT currently leads the sector in both supply and trading activity, according to available market data.
Crypto market maker Wintermute recently launched tokenized gold trading services aimed at institutions.
The firm projects that the overall tokenized gold market could grow to $15 billion by 2026 if adoption continues.
At the time of writing, XAUT traded near $4,909, with a 24-hour low of $4,835.91 and a high of $4,930.59. Trading volume increased about 75% over the past day.
Data from CoinGlass showed that XAUT futures open interest rose nearly 2.50% to $453.28 billion within four hours, reflecting elevated derivatives activity.
Source: https://www.livebitcoinnews.com/elemental-royalty-to-pay-dividends-in-tethers-xaut-gold-token/
