Elemental Royalty Corporation has become the first publicly listed gold company to offer shareholders the option to receive dividends in Tether Gold (XAUt), a tokenized form of physical gold that marks a huge step in blending traditional finance with blockchain-based assets.
With the announcement made on February 17, Elemental, a gold-focused royalty company listed in Canada, anticipates that qualifying registered shareholders will be able to elect to receive their dividend in the form of Tether Gold XAUt tokens, of par value to the dividend price, thereby providing Elemental shareholders with direct ownership of physical gold through their investment in gold royalties.
“We believe the initiation of this dividend policy is a world first for a royalty company and facilitates shareholders’ greater exposure to physical gold through Tether Gold’s stablecoin and retaining real long-term value storage via a practical mechanism for gold-denominated investment returns,” said Juan Sartori, Executive Chairman of Elemental Royalty Corporation, in the announcement.
This action marks an immense shift in how investors can receive the gold-based value. As the initiative represents blockchain technology can be incorporated into business financial operations, instead of limiting the tokens only for trading activity, expanding the shareholders’ exposure to receive digitalized gold dividends in XAUt instead of only fiat currency.
Paolo Ardoino, CEO of Tether, said, “Using XAU₮ for shareholder dividends marks a major step forward for the gold industry and shows how tokenized assets can unlock new financial models that were previously out of reach.”
This new initiative follows Tether’s investment arm, which bought a one-third stake last year in Elemental to extend the diversification of assets and further strengthen the strategic ties.
Rising Market Activity in Tokenized Gold
According to CoinMarketCap, the tokenized gold market cap is $4.9 billion, with trading volume up 69.31% to $804 million, as of writing. In that Tether Gold (XAUt) token is the leading token by market cap of $2 billion, 24-hour volume, and also with a circulating supply.
This comes after Tether Gold’s announcement of Scudo denomination for its XAUt token, which is defined as one-thousandth of an XAUt, with users to use whole or partial units of Scudo to send or receive for any day-to-day transactions.
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