Gold Company Introduces Payout in Physical Gold-Linked Digital Asset

The Canada-listed gold royalty firm is set to become the first publicly traded gold company to give shareholders the option of receiving dividends in a tokenized, gold-backed digital asset instead of traditional cash.

The move blends conventional mining finance with blockchain-based settlement infrastructure, signaling a new direction in how resource companies may reward investors.

Dividend structure and payout timeline

The company expects to distribute an annual dividend of US$0.12 per common share, paid quarterly in installments of US$0.03. The inaugural record date is scheduled for the end of the first calendar quarter of 2026.

Based on a mid-February share price of US$21.05, the projected payout implies a forward annualized dividend yield of approximately 0.6%. With 63.9 million shares outstanding, around US$1.9 million is expected to be distributed for the first quarter alone.

Shares closed at US$19.41 on February 17, down 7.79% on the day, after trading between US$18.90 and US$20.90. The company’s market capitalization stands near CAD 1.69 billion.

The XAUt alternative

Under a partnership with Tether, qualifying registered shareholders may elect to have their cash dividends converted into Tether Gold tokens.

Each XAUt token represents ownership of one fine troy ounce of physical gold allocated on a specific bar that meets London Bullion Market Association Good Delivery standards. In practical terms, this allows investors to hold blockchain-based claims tied directly to vaulted bullion rather than receiving fiat currency.

The option follows Tether’s 2025 acquisition of roughly one-third of Elemental Royalty, aligning the gold royalty model with digital asset infrastructure. Management positions the initiative as a way to provide investors with more flexible exposure to physical gold through a liquid and transferable format.

Bridging traditional mining and digital finance

While the dividend yield itself remains modest, the strategic significance lies in the payment mechanism. By allowing shareholders to opt into tokenized gold, Elemental Royalty is effectively testing how legacy resource companies can integrate blockchain rails into capital return strategies.

Additional details regarding the formal dividend declaration and the process for electing the XAUt option are expected in a forthcoming release on the company’s official website.

If successful, the model could open the door for broader experimentation across the mining sector, particularly among companies seeking to attract both traditional income investors and digital asset participants.

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