Elemental Royalty said investors will be able to receive dividends in Tether Gold, marking a novel Wall Street use case for tokenised gold.
The Colorado-based firm said the move will allow shareholders to gain direct exposure to physical gold through a 12-cent dividend distributed over several quarterly payments, while retaining the option to receive cash.
“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 Cole, chief executive of Elemental Royalty.
Tether’s XAUT product has grown to a market capitalisation of about $2.5 billion, after peaking near $3.5 billion earlier this month as gold prices climbed sharply over the past year.
Tether chief executive Paolo Ardoino said the initiative demonstrates how tokenised assets can unlock new corporate finance models, adding that previous efforts to integrate gold tokens on Wall Street had proven challenging.
Ardoino recently estimated that Tether holds roughly 140 tonnes of gold in Switzerland, partially backing both XAUT and its $183 billion USDT stablecoin.
Elemental’s shares fell 7.8% to $19.41 following the announcement, as tokenised gold products such as XAUT and PAX Gold compete for institutional demand in a market some traders expect could reach $15 billion by year-end.