RWA world premiere: First stock corporation pays dividends in tokenized gold
- In a statement that caught the attention of the traditional commodity sector and the crypto industry, Tether announced that its gold token XAU₮ will be used to pay dividends to shareholders for the first time.
- The Elemental Royalty Corporation, which holds rights to the income of mining companies worldwide, is the first public company in the world to no longer pay its dividends exclusively in fiat money.
Die Decision of the Denver, CO-based company marks a turning point in connecting traditional commodity business and digital asset infrastructure.
Although gold has been a secure store of value for thousands of years, the actual, physical transfer of ownership has always been associated with high logistical hurdles. This has changed with the Tether token XAU₮: The token represents one troy ounce of gold, which is physically deposited in the form of a London Good Delivery bar.
Elemental Royalty shareholders can therefore receive their dividend directly in digital gold, which can be redeemed at any time, transferred globally and divisible.
New dividend policy
In parallel to the Tether announcement, Elemental Royalty released its own statement in which the company explains its new dividend policy. The annual distribution is $0.12 per share and is paid quarterly.
Shareholders can choose whether they would like to receive the dividend in FIAT money as before or in the form of XAU₮ tokens. The company emphasizes that this option not only demonstrates innovation, but also creates a new form of value retention.
With a strong balance sheet, over $50 million in cash and cash equivalents and no long-term debt, Elemental Royalty believes it is well positioned to maintain this modern form of distribution over time.
Tokenized gold connects two worlds
The world’s first introduction of dividend payments in tokenized gold shows how real-world assets are increasingly integrated into digital infrastructures.
While cryptocurrencies are still perceived by many as a speculative asset class, tokenized gold offers a combination of traditional value stability and modern tradability.
Tether has been offering the XAU₮ token for years as a digital counterpart to physical gold that can be transferred around the clock.
The decision by a listed company to pay dividends in this form brings the concept to global attention for the first time.
Importance for the crypto and commodity sector
The cooperation between Tether and Elemental Royalty could serve as a blueprint for other companies. The crypto industry has proven that tokenized assets outside of the real estate sector are not impractical, but can find real applications in everyday business life.
This opens up an opportunity for the precious metals industry to appeal to new groups of investors who prefer physical gold but expect digital flexibility.
Elemental Royalty Corporation’s move may have triggered an expansion of the role of RWA tokenization in the global financial system.
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