Elemental Royalty Corporation (TSXV: ELE), a Canada-based gold royalty company, is breaking new ground by offering shareholders the option to receive dividends in a gold-backed cryptocurrency. In a landmark move, the company announced it will allow investors to collect dividend payments in Tether Gold (XAUT), a blockchain-based token backed by physical gold.
This initiative makes Elemental Royalty the first publicly traded gold company to provide dividends in tokenized gold rather than traditional fiat currency. Shareholders who select this option will receive XAUT tokens instead of cash, giving them direct exposure to the price of gold while benefiting from the speed and flexibility of digital asset settlement.
Tether Gold (XAUT), issued by stablecoin giant Tether, is currently the leading gold-backed token by market capitalization and trading volume. Each XAUT token represents ownership of physical gold, combining the stability of precious metals with the accessibility of blockchain technology. The tokenized gold market has grown rapidly in recent years, surpassing $5 billion in total market value as retail and institutional investors seek alternative ways to invest in gold without relying on traditional custodians.
Elemental’s decision follows Tether’s acquisition of approximately one-third of the company last year, further strengthening ties between the gold royalty firm and the digital asset issuer. By integrating blockchain-based dividends, Elemental is positioning itself at the intersection of traditional mining finance and emerging crypto innovation.
The option to receive dividends in gold-backed tokens offers shareholders enhanced liquidity, global transferability, and seamless digital settlement, while maintaining exposure to gold’s price performance. As tokenized real-world assets continue gaining traction, Elemental Royalty’s move could signal a broader shift in how public companies distribute shareholder returns in the digital age.
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