Elemental Royalty Corporation has announced that shareholders will be able to receive dividend payments in Tether Gold, a blockchain based token backed by physical gold. The move positions the Canada based royalty company as the first publicly listed gold firm to offer investors the option of receiving returns in a cryptocurrency directly linked to bullion.
Under the new structure, shareholders may elect to receive their dividend distributions in XAUT, the digital token issued by Tether that represents ownership of physical gold stored in secure vaults. Investors who choose this option will receive exposure tied to the price of gold while benefiting from digital settlement and on chain transferability.
The announcement follows Tether’s acquisition of roughly one third of Elemental Royalty last year, strengthening ties between the traditional gold royalty business and digital asset infrastructure. By integrating tokenized gold into its dividend policy, Elemental is effectively merging conventional mining royalty revenue streams with blockchain based asset distribution.
Tokenized gold has emerged as one of the fastest growing segments within the digital asset market. The total market capitalization of gold backed tokens has surpassed 5 billion dollars, driven largely by retail investors seeking easier access to bullion exposure without relying on traditional brokerage accounts or physical storage. XAUT remains one of the leading products in the sector by supply and trading volume.
For shareholders, the option introduces flexibility. Those preferring traditional fiat payouts can continue to receive cash dividends, while others may opt for tokenized gold to align with inflation hedging strategies or digital asset portfolio diversification. Because XAUT is backed by allocated physical gold, its value is designed to track the spot price of bullion, subject to market fluctuations.
Industry analysts view the development as part of a broader trend toward tokenization of real world assets. Gold, often regarded as a store of value during periods of economic uncertainty, has seen renewed interest amid volatile macroeconomic conditions. Digital representations of gold allow for fractional ownership, faster settlement and global transferability without the logistical complexities of moving physical metal.
Regulatory frameworks around tokenized commodities continue to evolve, but gold backed tokens differ from algorithmic or fiat stablecoins in that they represent claims on tangible assets. In this case, dividend payments distributed in XAUT effectively give shareholders a choice between conventional currency income and exposure to physical gold through blockchain rails.
Elemental Royalty’s decision may encourage other resource or commodity linked companies to explore alternative dividend mechanisms. As blockchain infrastructure matures and investor familiarity with tokenized assets increases, hybrid financial models blending traditional equity structures with digital settlement options could become more common in capital markets.
