Canada-based Elemental Royalty Corporation has announced the launch of a dividend policy and introduced an option
for shareholders to receive payouts not only in fiat, but also in Tether Gold (XAU₮ / XAUT) — a digital asset
backed by physical gold. The company positions the initiative as a first-of-its-kind case among public companies in the sector,
allowing dividends to be linked to the price of gold while retaining the convenience of digital settlement.
Key highlights
- Shareholder choice: dividends in XAU₮ instead of fiat (for qualifying registered shareholders, subject to jurisdictional restrictions).
- Dividend policy: expected annual dividend of $0.12 per share; paid quarterly at $0.03.
- Timing: the first record date is expected at the end of Q1 2026.
- Rationale: XAU₮ dividends provide gold exposure in a digital format, rather than a pure cash amount.
- Context: the RWA and tokenized-gold market is expanding; XAU₮ and PAXG are the leading products in the category.
What the company announced
Dividend policy
The board approved a dividend policy under which the company expects to declare an annual dividend of
$0.12 per common share, paid in equal installments of $0.03 each quarter.
The first record date is expected to be set for the end of Q1 2026, with subsequent record dates
at the end of each quarter.
XAU₮ dividend option
In addition to standard fiat payouts, the company said a portion of qualifying registered shareholders will be able
to elect to have their cash dividend used to purchase Tether Gold (XAU₮) at the dividend’s equivalent (“par”) value.
The company plans to publish detailed instructions on how to make the election closer to the formal announcement of the relevant dates.
Why this matters for the market
Traditionally, investors in gold-linked companies receive dividends in fiat and then decide on their own whether to buy gold with the proceeds.
The XAU₮ mechanism changes the distribution logic: dividends can be delivered directly in an asset that tracks the metal, rather than in cash.
In practice, this may appeal to shareholders who want to maintain “gold exposure” while still benefiting from the flexibility of digital custody
and transfers.
What Tether Gold (XAU₮) is and how it works
XAU₮ is a gold-backed token which, according to the issuer, is linked to physical gold on a
1 token = 1 troy ounce basis, held in London Good Delivery bars. The token is available on
Ethereum (ERC-20) and TRON (TRC-20), allowing holders to store it in a crypto wallet,
transfer it on-chain, and exchange it through crypto market infrastructure when needed.
Based on reported data, Tether’s gold reserves backing XAU₮ held with the custodian amount to 520,089 troy ounces.
Against this backdrop, XAU₮ maintains a leading position in the tokenized-gold segment by both trading activity and supply.
The Elemental–Tether connection
The XAU₮ dividend initiative follows Tether’s earlier acquisition of a meaningful stake in Elemental. In that context, the move looks like part of
a broader strategy to strengthen exposure to “real-world assets” (RWA), where tokenized precious metals serve as a straightforward bridge between
traditional markets and on-chain infrastructure.
Tokenized gold market: why it’s growing
The tokenized-gold segment is expanding rapidly, with total market capitalization exceeding $5 billion.
The category is dominated by XAU₮ and PAX Gold (PAXG): PAXG ranks second, with an estimated market cap of
around $2.26 billion. Growth is driven largely by retail investors seeking access to gold without traditional intermediaries,
as well as a broader shift toward digital forms of asset ownership.
What investors should watch
Potential benefits
- Direct link to gold: dividends can reflect the metal’s price dynamics rather than just a fiat amount.
- Digital liquidity: the asset can be stored and transferred using crypto infrastructure.
- Flexibility: potentially more convenient for international holders and portfolios with digital-asset exposure.
Risks and limitations
- Regulatory constraints: the XAU₮ option may not be available in all countries or for all account types.
- Taxes and reporting: dividends paid in a digital asset may have specific tax/accounting implications.
- Infrastructure and custody: storage practices, redemption terms, and the issuer’s operational rules matter.
Key figures (one table)
| Metric | Value |
|---|---|
| Expected annual dividend | $0.12 per share |
| Expected quarterly dividend | $0.03 per share |
| Expected first record date | End of Q1 2026 |
| Payout options | Fiat or XAU₮ (Tether Gold) (for qualifying registered holders) |
| Tokenized gold market cap | > $5B |
| Tether gold reserves (XAU₮ backing) | 520,089 troy ounces |
| PAXG (second largest) | ~$2.26B market cap |
What’s next
The next step is a formal company notice with the dividend details, key dates, and instructions on how qualifying registered shareholders can elect
to receive XAU₮ instead of a fiat payout. If the mechanism proves popular, it could become a template for other public companies in the commodities
sector looking to link value distribution to the underlying asset while leveraging the benefits of digital settlement.