Elemental Royalty Corporation, the world’s first company to offer investors the option to receive payments in cryptocurrency backed by precious metals, is making headlines.
The Canadian firm has become the first publicly traded company in the sector to provide shareholders with the opportunity to receive dividends in gold-backed digital assets.
For these payments, the company will utilize Tether Gold (XAUT), issued by the largest stablecoin issuer, Tether.
Dividends in “Gold Tokens” and Sector Growth
Shareholders will have the option to receive dividends in XAUT instead of fiat currency, ensuring a direct link to gold prices while enjoying the flexibility of digital transactions.
According to a press release, this marks the first instance of its kind among publicly traded companies in the sector. This initiative follows Tether's acquisition of a one-third stake in Elemental last year.
The investment is part of Tether's strategy to strengthen its position in the real-world assets segment. According to CEO Paolo Ardoino, the resilience of digital financial infrastructure requires reliance on time-tested tools.
As part of the deal, Elemental has provided Tether with “diversified access to global gold mining without operational risks.”
The Tokenized Gold Market
The sector is experiencing rapid growth, with a total market capitalization exceeding $5 billion. XAUT leads both in trading volume and supply.
Tether's gold reserves with the custodian amount to 520,089 troy ounces.
PAX Gold (PAXG) ranks second on CoinGecko with a market capitalization of $2.26 billion.
The primary driver of growth in this segment is retail investors seeking access to precious metals without the involvement of traditional custodians and intermediaries.
Additionally, the market maker Wintermute has launched over-the-counter trading of tokenized gold, with transactions settled in cryptocurrencies, stablecoins, and fiat currencies.