Tether debuts tokenized gold dividends as alternative to cash on Wall Street

Tether emphasized that Tether Gold XAUT has risen to the top as the first publicly listed gold firm structure to offer shareholders the option to receive dividends in tokenized gold, marking what it describes as a major breakthrough in the gold industry.

The digital gold sector is currently experiencing explosive interest, with the token’s market capitalization nearing $2.55 billion and leading broader growth in tokenized real-world assets.

Following this announcement, Elemental Royalty Corporation highlighted the connection between tokenized gold ownership and standard royalty payments on the blockchain while assuring investors that they can choose to receive dividends in XAUT rather than cash.

On the other hand, Paolo Ardoino, Tether CEO, stressed that this advancement encourages the use of gold in modern finance via tokenization. Currently, XAUT is trading at $4,907.26, up 0.04% over the past 24 hours, according to CoinMarketCap.

Investors demonstrate interest in XAUT

The new product from Tether is expected to grant investors direct physical gold ownership by allocating funds to gold royalties. Reports expect these firms to pay about 12 cents in dividends to investors through quarterly payments.

The offer was a landmark in the industry because it represented the first time a publicly traded gold company had executed such a strategy. The product comes after Tether gained roughly a 33% stake in Elemental in 2025.

Gold-backed tokens are now the fastest-growing asset class, with the valuation of the overall tokenized gold market exceeding $5 billion.

XAUT plays a key part in this value, securing its position as a leader in this sector in terms of supply and volume. This is because several investors, who want to own gold independently, avoiding reliance on intermediaries or custodians, have illustrated heightened interest in the digital token 

Notably, even with this advancement, investors who prefer cash distributions can still receive dividends in cash. Even so, David Cole, the CEO of Elemental Royalty Corporation, viewed supporting Tether’s offering as a way of securing the firm’s future.

“By offering investors a dividend in Tether Gold, we set Elemental apart as a forward-looking and growth-focused investment,” he said. Meanwhile, despite the innovative move, Elemental’s stock price declined to $19.41, a 7.8% drop.

The company generates income by securing royalty interests in mining projects. According to its executive, this strategy is beneficial because it reduces risks associated with owning and operating mines while keeping opportunities for gain open.

Tether shifts its focus toward XAUT

Tether’s shift towards tokenizing gold, after building a legacy on USD-linked tokens, is tied to the recent surge in gold’s price. The market valuation of XAUT escalated to $2.5 billion from an initial record of  $714 million.

Towards the end of last year, the firm had successfully established about 375,000 XAUT. A report from accounting firm BDO Italia showed that this figure rose by 38% from three months earlier. On the other hand, data from CoinGecko showed that the market capitalization of USDT rose to an all-time high of $187 billion, a 7% increase.

These figures represent that XAUT’s total supply increased fivefold compared to USDT’s in the last quarter, suggesting that investors now prefer gold-backed assets.

Responding to this market behavior, Ardoino mentioned that, “XAUT was created to remove uncertainty during a time when trust in financial systems is declining.” Afterwards, he expressed concern over mounting government debt and continued inflationary pressures 

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