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Tether Gold Enables First Tokenized Dividend Payouts

Elemental Royalty Corporation partners with Tether to offer XAU₮ dividends as stablecoin issuer amasses 148 tonnes of bullion

By Amoo Jubril

9 hours ago

Last updated

9 hours ago

Tether Gold Enables First Tokenized Dividend Payouts

KEY FACTS

  • Elemental Royalty Corporation becomes first public gold company to offer dividends in Tether Gold (XAU₮)
  • Tether now ranks among world's top 30 gold holders with 148 tonnes valued at $23 billion
  • XAU₮ dividends give shareholders direct gold exposure instead of cash equivalents

Tether has announced a landmark development for the gold industry. Elemental Royalty Corporation has become the first publicly listed gold company to offer shareholders dividends in tokenized gold through Tether Gold (XAU₮).

The publicly traded gold royalty company will allow investors to elect XAU₮-denominated dividend payments. This creates a direct connection between traditional gold ownership and blockchain-based financial infrastructure.

XAU₮ is a digital asset fully backed by physical gold reserves. The token combines gold’s historic stability with the speed and accessibility of blockchain technology.

Shareholders opting for XAU₮ dividends will receive returns directly tied to gold rather than cash equivalents. This aligns distributions more closely with the underlying commodity asset.

Tether’s New Chapter for Gold-Linked Corporate Finance

The announcement marks a significant evolution for both gold markets and digital asset infrastructure. Tokenization is now extending beyond trading into real-world corporate finance applications.

Paolo Ardoino, CEO of Tether, addressed the development in a statement. He noted that gold has always been one of the most trusted stores of value worldwide.

“Integrating it directly into modern financial distribution models has been difficult,” Ardoino said. “Using XAU₮ for shareholder dividends changes that dynamic completely.”

He described the move as a major step forward for the gold industry. Ardoino added that tokenized assets can unlock financial models that were previously out of reach.

For decades, gold investors have sought more direct ways to participate in gold-linked value creation. Elemental’s structure now allows shareholders to receive returns tied directly to gold.

Meanwhile, the flexibility of digital settlement adds another layer of utility. Investors can hold, transfer, or convert their XAU₮ dividends with blockchain-enabled efficiency.

As tokenized real-world assets gain momentum globally, XAU₮ is finding new use cases. The token increasingly serves as a bridge between traditional commodities and digital financial infrastructure.

Tether’s Growing Gold Empire

The dividend announcement arrives as Tether continues expanding its physical gold holdings. The stablecoin issuer has emerged as one of the world’s largest gold holders in recent months.

Wall Street investment bank Jefferies released a report in early February detailing Tether’s gold reserves. As of January 31, the company held an estimated 148 tonnes of bullion.

That stockpile carries a valuation of roughly $23 billion. Tether’s aggressive accumulation strategy has positioned it among the top 30 global owners of the precious metal.

The firm’s quarterly gold purchases exceeded those of most individual central banks during Q4 2025. Only Poland and Brazil acquired more gold than Tether during that period.

Tether added approximately 26 tonnes in Q4 2025 alone. The company then purchased another 6 tonnes in January, continuing its buying momentum.

Following this accumulation spree, Tether’s holdings now exceed those of several sovereign nations. Australia, the United Arab Emirates, Qatar, South Korea, and Greece all hold less gold.

The crypto firm has become one of the largest non-sovereign buyers of bullion worldwide. This positions Tether as a major player in traditional commodity markets.

In contrast to typical stablecoin reserve strategies focused on cash and bonds, Tether has diversified into hard assets. Gold now represents a substantial portion of its overall treasury holdings.

The XAU₮ dividend program and Tether’s physical gold accumulation represent parallel strategies. Both efforts aim to expand gold’s role within digital financial systems.

Elemental Royalty Corporation shareholders can now access gold exposure without additional purchases. The XAU₮ option provides an alternative to traditional cash dividend payments.

This development may encourage other gold-focused companies to explore similar structures. Tokenized dividends could become a new standard for commodity-linked corporate distributions.

Disclaimer: Coinwaft is a crypto media platform providing cryptocurrency news, analysis, and trading information. The content of this article is for informational purposes only and should not be considered as financial, legal, or investment advice. Readers are advised once again to research or consult a financial expert before making any financial decision.

© 2026 Coinwaft. All Rights Reserved.

Amoo Jubril

Amoo Jubril

Writer

I’m a blockchain-focused content writer helping crypto brands build trust through storytelling that’s simple, authentic, and community-driven

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