Elemental Royalty Corporation (ELE) is now offering shareholders something no other public gold company has before: the ability to receive dividends in blockchain-based tokens backed by gold.
In a move announced Tuesday, the Canada-based royalty company said it will distribute shareholder returns using stablecoin issuer Tether’s tokenized gold, Tether Gold (XAUT).
Shareholders who choose this route will receive their dividends in XAUT instead of fiat money, providing exposure directly tied to the price of gold with the added flexibility of digital settlement.
It is the first time a listed gold company has made such an offer, according to the press release. The move comes after Tether bought a third of Elemental last year.
Gold-backed tokens have emerged as a rapidly growing asset class. The total tokenized gold market has surpassed $5 billion, with XAUT currently leading the sector in both volume and supply. Much of this growth has been driven by retail investors seeking exposure to gold without relying on traditional custodians or intermediaries.
Read more: Tether’s gold holdings top $23 billion as purchases outpace nation states, Jefferies says
