BlockBeats News, February 18th, according to a report from the Associated Press, Colorado mining royalty company Elemental Royalty announced on Tuesday that it will allow investors to receive dividends in the form of Tether-issued gold stablecoin XAUT. This move is seen by the industry as the first practical application of tokenized gold in the traditional corporate finance sector.
Elemental is expected to distribute a total dividend of 12 cents per share to shareholders through several quarterly installments. Investors can still choose the traditional cash dividend option, but Elemental CEO David Cole stated that “providing dividends in Tether Gold physical tokens further highlights Elemental’s positioning as a forward-thinking investment company.”
Tether CEO Paolo Ardoino commented on this, saying that this marks a significant milestone for the gold industry and shows how tokenized assets can unlock new financial models that were previously out of reach.
At the time of writing, XAUT has a market capitalization of approximately $2.2 billion. With the continuous rise in the price of gold, the token’s market capitalization reached a historical high of $3.5 billion earlier this month.
