Elemental Royalty Corporation, a Canadian gold royalty company, has announced a groundbreaking initiative to offer dividends in Tether’s tokenized gold, known as Tether Gold (XAUT). This innovative approach allows shareholders to receive their returns in a cryptocurrency that is directly linked to the price of gold.
In a statement released on Tuesday, the company confirmed that this option is the first of its kind among publicly listed gold firms. Shareholders opting for XAUT will benefit from the flexibility of digital transactions while gaining exposure to gold without the need for traditional financial intermediaries.
This development follows Tether’s significant investment in Elemental, where it acquired one-third of the company last year. The rise of gold-backed tokens has been notable, with the market for such assets exceeding $5 billion, and XAUT leading in both trading volume and supply.
The increasing popularity of tokenized gold reflects a growing trend among retail investors who are looking for alternative ways to invest in gold without relying on conventional custodians.
“This marks a significant milestone in the evolution of how dividends can be distributed in the mining sector,” the company stated in its press release.
Elemental Royalty Corporation has become the first publicly listed gold company to offer dividends in Tether Gold (XAUT), allowing shareholders to receive returns in a cryptocurrency backed by gold. This initiative follows Tether's investment in the company and highlights the rising interest in gold-backed tokens among retail investors.