Gold firm Elemental Royalty to pay out dividends in Tether's tokenized gold
Summary
A pioneering company has announced it will allow investors to receive dividend payments in cryptocurrency, specifically backed by gold. This innovative move positions the firm at the forefront of the evolving intersection between digital assets and traditional investments.
Key Insights
What is Tether Gold (XAU₮) and how does it work?
Tether Gold (XAU₮) is a digital asset backed by physical gold stored in LBMA (London Bullion Market Association) good-delivery vaults. It combines the stability of gold with blockchain technology, enabling holders to gain direct exposure to bullion while benefiting from digital transferability and settlement. Each XAU₮ token represents ownership of one fine troy ounce of physical gold. By receiving dividends in XAU₮ instead of cash, investors gain direct gold exposure rather than cash equivalents, aligning their returns more closely with the underlying commodity.
Why is Elemental Royalty's dividend offer considered historically significant?
Elemental Royalty Corporation has become the first publicly listed gold company globally to offer shareholders the option to receive dividends in tokenized gold. This milestone represents a major evolution in how gold-based companies return value to investors by connecting traditional gold ownership with blockchain-based infrastructure. The move demonstrates how tokenization can extend beyond trading into real-world corporate finance, integrating gold directly into modern financial distribution models—something that has been difficult to achieve historically. The company is offering an annual cash dividend of US$0.12 per share (0.6% yield), with qualifying registered shareholders able to elect to receive these payouts in XAU₮ instead of cash.