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The company asserted its position as the pioneer in allowing investors to choose dividend payments in a cryptocurrency that is backed by gold.
Gold (Unsplash/Zlataky/Modified by CoinDesk)
What to know:
- Elemental Royalty is the inaugural public gold company to disburse dividends in tokenized gold
- Shareholders now have the option to receive returns in Tether Gold (XAUT), a blockchain-based token that is supported by physical gold.
- Tokenized gold has experienced significant growth in the past year due to increasing retail interest in the precious metal.
Elemental Royalty Corporation (ELE) is currently providing shareholders with a unique opportunity: the choice to receive dividends in blockchain-based tokens that are backed by gold.
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In an announcement made on Tuesday, the Canadian royalty firm revealed plans to distribute shareholder returns using Tether’s tokenized gold, Tether Gold (XAUT).
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Shareholders opting for this method will receive their dividends in XAUT instead of traditional fiat currency, offering a link directly associated with the price of gold and the convenience of digital transactions.
This represents the first instance of a publicly traded gold company making such an offer, according to the press release. This initiative follows Tether’s acquisition of one-third of Elemental last year.
Gold-backed tokens have emerged as a rapidly growing asset class. The overall market for tokenized gold has exceeded $5 billion, with XAUT currently at the forefront of the sector in terms of both volume and supply. Much of this expansion is attributed to retail investors looking for exposure to gold without depending on conventional custodians or intermediaries.
Read more: Tether’s gold stash tops $23 billion as buying outpaces nation states, Jefferies says
