Elemental Royalty to pay dividends in Tether Gold tokens

Traders Union
All News
Crypto
Elemental Royalty pays dividends in XAUT

Dividend policy with a digital twist

Elemental Royalty said its board has approved an inaugural dividend policy under which it expects to declare an annual cash dividend of US$0.12 per common share, paid quarterly at US$0.03 per share. The first record date is scheduled for the end of the first calendar quarter of 2026.

In addition to cash, qualifying registered shareholders will be able to elect to receive their dividend in Tether Gold (XAUT), a token backed 1:1 by one fine troy ounce of physical gold meeting the London Bullion Market Association’s Good Delivery standard.

Chief Executive David M. Cole said:

“The approval of this dividend policy marks an important milestone in Elemental’s strategic trajectory and reflects our confidence in the strength and momentum of the business; we believe this is the right time to introduce a sustainable, long-term, dividend.”

Chief Financial Officer Stefan Wenger added:

“Our inaugural dividend is underpinned by Elemental’s strong balance sheet and future revenue outlook in the near and longer-term: as of December 31, 2025, we had approximately US$53 million of cash and no debt, providing substantial financial flexibility as we continue to invest in growth.”

Tokenized gold gains gomentum

Tether Gold (XAUT) is one of the leading gold-backed digital tokens and forms part of a rapidly expanding tokenized real-world asset market. Industry data show that the total market capitalization of tokenized gold products has surpassed $5 billion, with XAUT among the largest by supply and trading volume.

Elemental’s move comes after Tether acquired roughly one-third of the company last year, strengthening strategic ties between the two firms. By allowing dividends to be paid in XAUT, shareholders can gain direct digital exposure to vaulted physical gold while benefiting from blockchain-based settlement.

Based on Elemental’s recent share price of US$21.05 and 63.9 million shares outstanding, the first quarterly payout is expected to total approximately US$1.9 million, implying a forward annualized yield of about 0.6%.

Bridging traditional and digital finance

Elemental’s dividend innovation underscores a broader shift as public companies experiment with tokenized assets to enhance investor choice and capital efficiency. Gold-backed tokens have attracted investors seeking inflation hedges and alternatives to traditional custodial structures.

By blending royalty revenues with blockchain-based distribution, Elemental is positioning itself at the intersection of precious metals and digital infrastructure.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.