Precious Metals Royalties Firm to Offer Dividends in Tether's Tokenized Gold
Elemental Royalty will allow investors to receive dividends in the form of Tether’s XAUT, a tokenized gold asset, offering direct ownership of physical gold alongside traditional cash dividends. The expected dividend totals 12 cents distributed over multiple quarters. This initiative positions Elemental as an innovative, growth-oriented company in gold royalty investments while avoiding mining operation risks. Tether’s XAUT, whose market cap recently surged from $714 million to $2.5 billion, has seen increased adoption amid rising gold prices and interest in tokenized assets. Other firms, such as Rumble, have also integrated XAUT for payments. Tether’s CEO, Paolo Ardoino, highlighted that Elemental’s move demonstrates tokenized gold’s potential in corporate finance. Tether reportedly backs its gold tokens with 140 tons of gold stored in Switzerland and supports its USDT stablecoin partly with gold. The tokenized gold market is attracting institutional traders and could reach $15 billion by year-end due to growing demand and de-dollarization trends.
