Tether Gold (XAU₮) debuts in dividends via Elemental Royalty

Elemental Royalty Corporation (Nasdaq: ELE) will allow eligible shareholders to elect dividends in Tether Gold (XAU₮), a tokenized representation of allocated gold. According to CoinDesk, this represents the first time a publicly traded gold royalty company has enabled an option to receive dividends in tokenized gold.

How Elemental’s XAU₮ dividend option works

The company is introducing an optional dividend-in-kind mechanism where a declared cash dividend can be directed, at shareholder election, into Tether Gold (XAU₮) instead of remaining in cash. In practice, an elected amount of the cash dividend is used to acquire XAU₮ on behalf of the shareholder, with delivery to a compatible wallet or custodian account nominated during the election window.

Shareholders who do not make an election continue to receive cash under the standard dividend process. For those who elect XAU₮, the process typically requires providing wallet coordinates that support the token standard in use and acknowledging any KYC/AML requirements that apply to on-chain settlement through a broker, transfer agent, or custodian.

Operationally, settlement depends on the company’s corporate actions timeline. The record date determines who is entitled to the dividend, the election window governs instructions, and the pay date is when cash or XAU₮ is delivered. Transaction costs, blockchain network fees, and rounding conventions for fractional token amounts may apply and can differ from traditional cash payouts.

Why tokenized gold dividends matter now

Aligning a royalty company’s distributions with gold-linked instruments may reinforce the underlying commodity narrative that many shareholders already seek. Tokenized settlement could streamline cross-border distribution, reduce intermediaries in certain scenarios, and give investors a way to hold a gold-backed instrument without converting dividends into bullion or exchange-traded products.

Management has framed the policy as a differentiator within listed precious metals equities. “The decision to offer investors a dividend in kind, in the form of Tether Gold, further differentiates Elemental as a forward-thinking, growth-oriented investment,” said David M. Cole, CEO of Elemental Royalty Corporation.

What changes for eligible shareholders immediately

Immediately, shareholders gain an additional election path: cash by default or XAU₮ where eligibility and infrastructure permit. As reported by The Defiant, Elemental is the first publicly listed gold company to offer dividends in Tether Gold (XAU₮), underscoring the novelty of the option within traditional equity markets.

Investors who choose the token route should expect standard corporate action cadence, announcement, record date, election deadline, and payment date, but with added steps to furnish wallet details and acknowledge on-chain delivery mechanics. Tether, which is known for issuing stablecoins, noted on Feb. 17 that Elemental Royalty (Nasdaq: ELE) would offer this tokenized gold option, according to The Street.

Eligibility, record dates, election window, and settlement steps

Eligibility is determined by shareholder status and local regulations. In practice, only shareholders of record as of the record date can elect into the token option, and some jurisdictions or account types may be excluded based on compliance requirements. Beneficial owners holding through brokers generally follow their intermediary’s corporate action process and deadlines.

Record dates define entitlement; ex-dividend dates mark when new buyers no longer qualify for the upcoming payout under exchange rules; and the election window sits between announcement and the broker/intermediary cutoff. Instructions to receive XAU₮ typically must be submitted before the intermediary’s deadline, which can precede the company’s official cutoff.

Settlement occurs on the payment date. For XAU₮ electors, the cash dividend amount is used to purchase the tokens and deliver them to the provided address or custodian environment. Network fees and execution spreads can affect the net token amount received, and fractional distributions may be rounded based on the administrator’s policy.

At the time of this writing, based on data from CoinMarketCap, Tether Gold (XAU₮) ranked around number 31 by market capitalization and was down roughly 2.26% over the prior 24 hours. These figures are provided for context and do not reflect any forecast or recommendation.