Elemental Royalty has revealed its plans to allow its shareholders to receive dividends in Tether Gold (XAUT), a digital token fully backed by physical gold, as an alternative to cash payments. This initiative represents an innovative use of tokenized gold in conventional financial systems, where dividends are traditionally paid in fiat currency.
In brief
- Elemental Royalty will allow shareholders to receive dividends in Tether Gold with quarterly payments totaling $0.12 per share.
- Shareholders can still choose to receive cash dividends if they prefer the traditional method.
- Tether CEO Paolo Ardoino and Elemental Royalty CEO David Cole see dividend payments in XAUT as opening up new opportunities for investors.
Dividend Details and Company Outlook
Elemental Royalty said the annual dividend will be set at $0.12 per share, distributed in quarterly installments of $0.03 each. The first payment is expected after the close of the first quarter of 2026, with subsequent distributions at the end of each subsequent quarter. Shareholders can still choose to receive their dividends in cash, maintaining the traditional payout structure.
David M. Cole, Chief Executive Officer of Elemental Royalty, explained that the company's new dividend policy demonstrates confidence in its performance and marks a key milestone in its growth strategy. He added that offering dividends in Tether Gold sets Elemental apart as a truly innovative investment choice. The company emphasized that these payments are supported by its anticipated revenues and cash flow expansion in 2026 and subsequent years.
We believe this is the right time to introduce a sustainable, long-term dividend. The decision to offer investors an in-kind dividend, in the form of Tether Gold, further differentiates Elemental as an innovative, growth-oriented investment.
David M. Cole
Elemental's stock price closed at $19.41 on Tuesday, down 7.79%, according to Yahoo Finance, reflecting market fluctuations despite the new policy announcement.
Tether's XAUT: growth, adoption and gold backing
Tether first launched digital tokens pegged to the US dollar and has since expanded its offering to gold-backed tokens, providing a new way to invest in the precious metal. Over the past year, the price of gold has increased by 66%, while the market value of XAUT has surged 257%, including a year-to-date gain of 44.41%.
On the broader implications, Paolo Ardoino, CEO of Tether, highlighted that pay dividends in XAUT represents a major breakthrough for the gold sector, demonstrating how tokenized assets can create new financial opportunities. He added that while gold has long been a stable store of value, its integration into dividend systems has traditionally been a challenge.
XAUT adoption also extends beyond traditional finance. In January, video sharing platform Rumble announced that it would accept XAUT as a payment option alongside Bitcoin and Tether's USDT stablecoin, allowing users to reward content creators via the token.
Recently, Ardoino revealed that Tether holds around 140 tons of gold, worth around $24 billion, stored securely in Switzerland. He added that the company plans to continue increasing its gold reserves.
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