Editor’s Note
This article explores a novel development in digital assets, where a company is offering dividends in the form of tokenized gold. This move highlights the ongoing convergence of traditional finance and cryptocurrency, potentially creating new models for value distribution and investment.
The world of cryptocurrencies may be shaken by a new trend. With the rise of tokenized gold, investors are wondering if this revolutionary model will redefine the rules of the financial game.
As the digital asset market evolves at a breakneck pace, Elemental Royalty recently announced a bold decision: to offer dividends in the form of XAUT, the tokenized gold product issued by Tether. This initiative aims to give investors direct access to physical gold while benefiting from the advantages of blockchain technology. With a current valuation of 2.5 billion euros for XAUT and approximately 140 tonnes of gold held by Tether, according to its CEO Paolo Ardoino, this decision could transform traditional corporate finance by integrating tokenized gold into contemporary financial models.
Furthermore, Elemental Royalty indicated that investors could receive a total dividend of 12 cents distributed over several quarterly payments. However, it is interesting to note that despite this innovation, cash distributions remain possible for those who prefer this more conventional method.
Elemental Royalty, based in Colorado, is redefining what it means to invest in mining royalties with its latest dividend announcement. By offering dividends in the form of XAUT, the company offers a new perspective on how physical and digital assets can be integrated to maximize value for investors. David Cole, CEO of Elemental, considers this move a major distinction for the company in a sector often perceived as traditionally conservative.
Moreover, this paves the way for more innovations where traditional finance meets blockchain technology.
With this unique initiative on Wall Street, Elemental demonstrates how the precious metal can be used in the modern financial framework without compromising security or efficiency.
The integration of XAUT as a financial tool is not just an American affair. The rise of XAUT is also drawing attention to the European market where strict regulations such as MiCA (Markets in Crypto-Assets) strongly influence the development and adoption of blockchain technologies. European directives aim to ensure that these digital assets are used in full compliance with established financial standards.
In France, for example, where taxation on crypto-assets is a hot topic, the possibility of accessing dividends in tokenized gold could appeal to those looking to optimize their portfolio while respecting local tax obligations. French legal classification could also play a crucial role in the future development of the XAUT market and other similar products.
From a global perspective, as some economies gradually move away from the US dollar under pressure from increasing de-dollarization, XAUT offers a viable alternative for those seeking to diversify their reserves without relying solely on traditional fiat currencies.
Tether does not simply offer a gold-based stable product; its approach also integrates key technological innovations that facilitate the daily use of XAUT. For example, the recent introduction of the term “Scudo,” representing 1/1,000th of a troy ounce of gold associated with the XAUT token, not only simplifies its understanding but also its transactionality.
This effort allows ordinary consumers as well as businesses to easily use these smaller fractions in daily transactions or even when considering their long-term financial strategies thanks to the decentralized characteristics offered by the blockchain itself.
The growing adoption among various platforms like Rumble further underscores how these innovations are now touching all aspects of modern digital life, including content creation and user audience monetization.