XAU₮ Offers First Tokenized Gold Dividend from a Public Company

Listed gold companies will now pay shareholders tokenized gold rather than cash. This is a first for the precious metals industry. Elemental Royalty Corporation announced on February 17 that investors can choose to receive dividends denominated in Tether Gold (XAU₮). This allows traditional equity ownership to be linked directly to physical gold via blockchain rails.

This move is important because it demonstrates that tokenized products can function within existing corporate financial structures rather than simply being trading tools. Shareholders who opt for the

Why gold companies are paying attention

Gold royalty companies do not directly operate mines but generate revenue through production. This is already an attractive model for investors seeking gold exposure while reducing operational risk. Adding tokenized dividend options expands that thesis even further.

“Gold has always been one of the world’s most trusted stores of value, but integrating it directly into modern financial distribution models has been difficult,” said Paolo Ardoino, CEO of Tether. “Using XAU₮ for shareholder dividends completely changes this dynamic.”

Each XAU₮ token represents one troy ounce of physical gold from a London Good Delivery bar stored in a secure vault with a unique serial number. Holders can redeem their tokens for physical bars delivered in Switzerland. However, most will prefer the liquidity of storing their tokens on Ethereum or TRON.

Tether’s extensive gold push

The dividend announcement follows Tether’s $150 million strategic investment in Gold.com on February 6 with the goal of consolidating XAU₮ for physical gold purchases. The company has publicly stated its ambitions to become “one of the world’s largest central banks for gold,” with a goal of institutional and sovereign adoption.

XAU₮ is currently trading at around $5,091 as of February 21, with a market capitalization of $2.65 billion, up 1.59% in the 24 hours. The token was launched in 2020 and has grown steadily as investors seek an inflation hedge that does not require physical storage logistics.

What traders need to consider

The Elemental dividend structure creates interesting arbitrage considerations. Shareholders receiving XAU₮ enjoy gold price exposure and blockchain liquidity, while cash dividend recipients bear currency risk. During periods of dollar weakness or gold appreciation, XAU₮ options can provide meaningful performance.

For the broader tokenized asset market, this sets a precedent. If gold royalty companies can pay tokenized dividends, energy companies can theoretically pay with tokenized oil, and REITs can theoretically pay with tokenized real estate shares. The infrastructure proof of concept is more important than this single company’s dividend policy.

Watch for other gold-focused public companies to announce similar programs in the coming months. Once a company demonstrates that its regulatory and operational pathways work, followers usually emerge quickly.

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