Gold Royalty Firm to Offer Tokenized Dividends in Industry First

A Canada-listed gold royalty company is preparing to break new ground by giving shareholders the option to receive dividends in tokenized gold instead of cash — a first for a publicly traded gold firm.

The initiative merges traditional mining finance with blockchain-based settlement infrastructure, signaling a shift in how resource companies could return capital to investors.

Dividend Details

The company plans to pay an annual dividend of US$0.12 per share, distributed quarterly at US$0.03 per share. The first record date is set for the end of Q1 2026.

At a mid-February share price of US$21.05, the payout represents a forward annual yield of roughly 0.6%. With 63.9 million shares outstanding, the initial quarterly distribution is expected to total about US$1.9 million.

On February 17, shares closed at US$19.41, down 7.79% on the day, trading within a range of US$18.90 to US$20.90. The firm’s market capitalization stands at approximately CAD 1.69 billion.

The Tokenized Gold Option

Through a partnership with Tether, eligible shareholders can choose to convert their cash dividend into Tether Gold (XAUt).

Each XAUt token represents one fine troy ounce of physical gold, allocated to a specific bar that meets London Bullion Market Association Good Delivery standards. Instead of receiving fiat currency, investors would hold blockchain-based claims tied directly to vaulted bullion.

The move follows Tether’s 2025 acquisition of roughly one-third of Elemental Royalty, further aligning the company’s gold-focused business model with digital asset infrastructure. Management frames the option as a way to offer shareholders flexible, transferable exposure to physical gold.

A Strategic Test Case

Although the dividend yield is modest, the broader significance lies in the structure of the payout. By integrating tokenized gold into its dividend framework, Elemental Royalty is effectively testing whether legacy mining firms can incorporate blockchain rails into traditional capital return strategies.

Further details on the dividend declaration and the election process for XAUt are expected in an upcoming company release.

If the model proves viable, it could pave the way for wider experimentation across the mining sector, especially among firms seeking to attract both income-focused investors and digital asset participants.