Gold firm Elemental Royalty is breaking new grounds by giving shareholders the option to receive dividends in blockchain-based tokens backed by physical gold.
In an announcement on Tuesday, the Canada-based company said it will distribute returns using Tether Gold (XAUT), a token issued by Tether that represents ownership of real gold.
The move makes Elemental Royalty one of the first publicly traded gold firms to integrate tokenized assets into its dividend strategy, blending traditional mining royalties with digital asset infrastructure.
Elemental shareholders can opt for Tether Gold dividends
Shareholders of Elemental Royalty who opt in will receive dividends in Tether Gold instead of cash, giving them direct exposure to gold prices while benefiting from the speed and flexibility of blockchain-based settlement.
The company says this is the first time a publicly listed gold firm has offered dividends in a tokenized asset. The decision follows Tether’s acquisition of a one-third stake in Elemental last year.
The market for gold-backed tokens has grown quickly and is now worth more than $5 billion. Digital versions of gold are becoming more and more popular in the market as more investors look for easy ways to invest in gold.
Tether Gold is at the moment the largest participant in the economy in terms of trading volume and supply. Currently, retail investors are interested in XUAT because it allows them to invest in gold without having to physically store it or go through banks and custodians.
What is XAUT?
Tether Gold (XAUT) is a digital asset that is collateralized in gold and is issued by Telter. One XAUT token equals the ownership of one troy ounce of physical gold that is stored in secure vaults.
Unlike investing in gold, XAUT allows the transfer and trading of gold on blockchain platforms, which is faster and more accessible.
It is worth noting that XAUT is making headlines in the market as investors are eager to invest in gold without the inconveniences of storing it physically and using financial intermediaries.
As interest in safe-haven assets rises and tokenization grows, XAUT has emerged as a leading digital gold product in the expanding tokenized commodities market.