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World's First Gold Company Pays Dividends in Digital Gold
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World's First Gold Company Pays Dividends in Digital Gold

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Elemental Royalty becomes first public gold firm offering dividend payments in Tether Gold tokens. What this means for the future of corporate payouts and tokenized assets.

Your Dividend Check Just Got a Digital Makeover

Imagine opening your dividend statement and finding gold tokens instead of cash. That's exactly what shareholders of Elemental Royalty Corporation can now choose. The Canada-based gold company just became the first publicly listed gold firm to offer dividend payments in blockchain-based tokens backed by physical gold.

Shareholders can now elect to receive their returns in Tether Gold (XAUT) rather than traditional fiat currency. Each token represents one troy ounce of physical gold stored in Swiss vaults.

Why This Timing Makes Sense

The move isn't random. Last year, Tether—the company behind the world's largest stablecoin—acquired a one-third stake in Elemental Royalty. Meanwhile, tokenized gold has exploded into a $5 billion market, with XAUT leading both volume and supply.

Retail investors are driving this growth, seeking gold exposure without traditional custodians or storage headaches. Unlike physical gold, tokenized versions trade 24/7 and transfer globally with blockchain efficiency.

The Real Value Proposition

For investors, this eliminates a costly roundtrip. Traditionally, you'd receive cash dividends, then pay fees to buy gold. Now you can skip the middleman and receive direct gold exposure instantly.

The timing is particularly attractive given persistent inflation concerns. While cash loses purchasing power, gold historically serves as an inflation hedge. Plus, tokenized gold offers superior liquidity—you can trade it anytime, anywhere.

But there's a trust factor. Investors must believe Tether actually holds the 1:1 gold reserves it claims. Critics have long questioned the company's transparency around asset backing, though recent audits have shown substantial gold holdings exceeding $23 billion.

Winners and Losers

This innovation clearly benefits tech-savvy investors who value convenience and 24/7 access. Traditional gold dealers and custodians? Not so much. They're watching their value proposition erode as blockchain technology eliminates traditional friction points.

Corporate treasurers at other resource companies are likely taking notes. If shareholders embrace this model, expect similar offerings from silver, platinum, or even oil companies.

This content is AI-generated based on source articles. While we strive for accuracy, errors may occur. We recommend verifying with the original source.

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