Elemental Royalty sets a precedent, allowing investors to choose Tether Gold (XAUT) as a dividend payment

According to a press release from PR Newswire, Colorado-based mining rights company Elemental Royalty announced on Tuesday that it will allow investors to receive dividends in the form of Tether's gold-backed stablecoin XAUT. This move is seen as the first practical application of tokenized gold in the traditional corporate finance sector. Elemental expects to distribute a total dividend of 12 cents per share to shareholders through several quarters of installment payments.

Investors can still choose the traditional cash dividend option, but Elemental CEO David Cole stated, "Offering Tether Gold physical token dividends further highlights Elemental's differentiated positioning as a forward-looking investment company." Tether CEO Paolo Ardoino commented that this marks a significant advancement in the gold industry, showcasing how tokenized assets can unlock new financial models that were previously hard to reach. As of the time of publication, the market capitalization of XAUT is approximately $2.2 billion. With gold prices continuing to strengthen, the token's market cap reached a historic high of $3.5 billion earlier this month.