Tether Gold Used for Dividends, a New Step by the Issuer

Elemental Royalty Corporation, a Vancouver, Canada-based company, made history by offering dividend payment options usingTether Gold (XAUT). 

This move makes Elemental Royalty the first publicly traded gold issuer to distribute dividends in the form of tokenized crypto assets backed by physical gold.

The decision comes amid growing investor interest in gold tokens as a more flexible investment alternative.

Key Takeaways

• Elemental Royalty becomes the first public company to pay dividends in Tether Gold (XAUT).

• Tokenized gold like XAUT is growing rapidly, with the global market reaching USD 5 billion.

• Investors can now choose crypto-based dividends that are directly linked to the price of gold.

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Tether Gold Dividends: A New Innovation in the Crypto Market

Dividends are usually paid in fiat or additional shares.

However, Elemental Royalty now gives shareholders the option to receive dividends in the form of Tether Gold (XAUT), a blockchain-based token backed by physical gold.

In this way, investors not only receive financial benefits, but also direct exposure to gold prices.

This move is considered a major innovation because it combines the stability of gold with the flexibility of digital assets.

For investors familiar with crypto, dividend payments in XAUT provide a new way to manage a portfolio without relying on the traditional banking system.

Read also:1 IDR to XAUT

Tokenized Gold and Market Growth

Gold tokens like Tether Gold (XAUT) and PAX Gold (PAXG) have grown rapidly in recent years.

Market data shows that the total capitalization of tokenized gold has surpassed USD 5 billion, with XAUT leading in terms of volume and supply.

This growth is driven by retail investors seeking easier ways to own gold without having to physically store it. Gold tokens enable fast, transparent transactions and can be traded on various crypto exchanges.

Read also:How to Buy Digital Gold Safely, Cheaply, and Easily on Bittime

Impact on Issuers and Investors

For Elemental Royalty, the use of XAUT as a dividend strengthens the company's image as a pioneer in the adoption of blockchain technology in the gold sector.

Meanwhile, for investors, this option opens up opportunities for asset diversification in a more practical way.

Another advantage is the flexibility of digital settlement, which allows dividends to be sent and received instantly.

This reduces dependence on traditional payment systems and speeds up the distribution of profits to shareholders.

Risks and Challenges

While innovative, distributing dividends through crypto also faces challenges. Regulations in various countries have not yet fully accommodated dividend payments in digital assets.

Additionally, crypto price volatility can affect the dividend value investors receive.

However, because XAUT is backed by physical gold, the volatility risk is lower than pure crypto tokens.

The security of smart contracts and the transparency of gold reserves are key to maintaining investor confidence in this system.

Conclusion

Elemental Royalty's use of Tether Gold (XAUT) as a dividend marks an important step in the evolution of financial markets.

By combining physical gold and blockchain technology, the company is paving the way for a more modern profit distribution model.

If this trend is followed by other issuers, crypto-based dividend distribution could become the new standard in the future.

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FAQ

What is Tether Gold (XAUT)?

XAUT is a blockchain-based token backed by physical gold, issued by Tether.

Why does Elemental Royalty use XAUT for dividends?

To provide investors with flexible and directly linked dividend options for gold prices.

Are crypto dividends safe?

XAUT is backed by physical gold and uses smart contracts, making it relatively safer than speculative tokens.

What is the current market value of tokenized gold?

Over USD 5 billion, with XAUT as the market leader.

Will this trend be followed by other issuers?

Most likely, especially if regulations increasingly support the use of digital assets in dividend distribution.