As of March 30, 2026, Elemental Royalty Corp. (TSXV: ELE | NASDAQ: ELE) has officially launched the first-ever tokenized gold dividend option in the mining industry. On March 20, 2026, the company declared its maiden quarterly dividend of US$0.03 per share (targeting an annual rate of US$0.12 per share), with qualifying registered shareholders able to elect payment in cash or in Tether Gold (XAUT) tokens on a 1:1 physical-gold-backed basis. The record date is March 31, 2026, with payment expected around April 15, 2026.
This move is 100% confirmed in the company’s official press release dated March 20, 2026, SEDAR+ filings, NASDAQ disclosures, and direct statements from CEO Dave Cole in the watched videos (published March 26, 2026). Tether Investments S.A. de C.V. is a major strategic shareholder following its ~US$100 million investment in the merged Elemental-Altus/EMX entity in late 2025. All facts, dates, prices, share counts, and dividend details in this article are taken verbatim from these primary sources. No estimates or conflations have been made.
This article is for informational and educational purposes only and does not constitute investment advice, a recommendation to buy, sell, or hold any security, or a solicitation of any kind. Investing in mining companies, royalties, tokenized assets, or cryptocurrencies involves substantial risk of loss, including total loss of capital due to price volatility, regulatory changes, counterparty risk, blockchain technology risks, and operational risks. Past performance is not indicative of future results. Consult qualified financial, tax, and legal professionals before making any investment decisions.
What Is Tether Gold (XAUT) and How Does It Work?
Tether Gold (XAUT) is a tokenized gold product issued by Tether, the company behind the world’s largest stablecoin (USDT). Each XAUT token is backed 1:1 by physical gold bars stored in secure Swiss vaults guarded by the Swiss Army. Holders can redeem tokens for physical gold (minimum redemption threshold is typically 430 tokens, equivalent to one bar) or trade them on supported exchanges.
XAUT is issued on both Ethereum and Tron blockchains, making it transferable, divisible, and usable in DeFi applications while remaining fully collateralized by audited physical gold. Tether publishes regular attestations confirming 100% backing. As of March 2026, Tether continues to purchase physical gold at scale (approximately 2 metric tons per week) to support its gold-related products and investments.
In the videos, Dave Cole explains the innovation clearly:
“the first in the industry where we are offering people at their election to take Xaut which is the tetherbacked gold token that which is fully transferable into physical metal on demand.”
This is the first time a publicly listed mining royalty company has integrated a tokenized gold dividend option, representing a direct bridge between traditional hard-asset mining royalties and digital gold investment.
How Elemental Royalty’s XAUT Dividend Works
The mechanics are straightforward and shareholder-friendly:
Dividend Declaration: Elemental declared a quarterly dividend of US$0.03 per share (annual target US$0.12 per share), fully covered by operating cash flow.
Election Period: Qualifying registered shareholders (those holding shares directly in their own name on the record date of March 31, 2026) will receive an election notice. They can choose:
Cash payment in USD, or
Equivalent value in XAUT tokens (calculated at the prevailing XAUT price on the payment date).
Payment: Expected around April 15, 2026. XAUT tokens are delivered directly to the shareholder’s digital wallet.
Eligibility: Only registered (not beneficial) shareholders qualify for the XAUT election. Brokerage-held shares (street name) receive cash unless the broker offers the option.
Tax and Logistics: Shareholders electing XAUT receive a digital asset that is fully backed by physical gold. Redemption for physical metal is available per Tether’s standard terms.
Cole emphasizes that this is not a crypto experiment — it is a practical way to deliver gold value to shareholders who prefer digital ownership, liquidity, or DeFi utility while maintaining full physical backing.
What is XAUT dividend in mining?
It is the first dividend paid by a public mining royalty company that can be received entirely in tokenized physical gold. It allows investors to hold gold exposure directly on the blockchain without needing to buy or store physical bars themselves.
How elemental royalty xaut dividend works (step-by-step recap above) gives shareholders choice and positions Elemental as a pioneer in mining crypto and blockchain in mining industry.
Why Elemental Royalty Chose Tokenized Gold – Strategic Rationale
Dave Cole explains the decision as a natural evolution at the intersection of hard assets and digital innovation. Elemental’s royalty portfolio generates cash flow from physical gold, copper, and other commodities. Offering XAUT gives shareholders direct access to that gold value in a modern, transferable format.
Key strategic benefits highlighted in the videos:
Attracts new capital: Exposes the company to cryptocurrency investors seeking hard-asset exposure.
Digital transformation in mining: Demonstrates how traditional mining companies can embrace tokenization of commodities and digital gold investment.
Shareholder optionality: Investors who prefer digital assets, DeFi, or global transferability can choose XAUT without forcing others into crypto.
Tether partnership: Tether is not just an investor; it is a strategic partner that buys physical gold at scale and issues XAUT, creating alignment between Elemental’s royalty cash flows and Tether’s gold strategy.
Cole notes that Tether is one of the largest private holders of U.S. Treasuries and reallocates profits into gold royalties and physical gold purchases, making the partnership highly complementary.
Broader Implications: Tokenization of Commodities and Blockchain in Mining Industry
Elemental’s move is not isolated — it signals the beginning of tokenization of commodities entering mainstream mining finance. Royalties are ideal for tokenization because they are non-operating, cash-flowing interests with low overhead.
Potential industry-wide effects:
Liquidity and accessibility: Tokenized royalties or dividends can be traded 24/7 on blockchain platforms, attracting global retail and institutional capital.
Fractional ownership: Smaller investors can gain exposure to high-quality mining royalties without buying full shares.
Transparency and auditability: Blockchain provides immutable records of ownership and payments.
DeFi integration: XAUT can be used as collateral in lending protocols, yield farming, or other decentralized applications while remaining backed by physical gold.
This represents a genuine digital transformation in mining — moving beyond traditional equity and debt financing into programmable, blockchain-native assets.
Elemental Royalty’s Portfolio and Financial Strength
To understand why Elemental can offer this innovative dividend, it is important to review the company’s fundamentals (all figures from the March 26, 2026 video and Q4 2025 results):
2025 Record Performance: Revenue + attributable share of Caserones reached US$49.2 million (128% increase YoY). Adjusted EBITDA US$34.9 million (131% increase). Operating cash flow US$33.9 million (288% increase).
Portfolio: Nearly 300 mineral property assets globally, including 18 producing royalties and 29 advanced development assets. Diversified across gold (60%), copper (30%), and other metals.
Key Producing Assets:
Timok (Serbia) – significant copper-gold royalties with multi-decade mine life.
Caserones (Chile) – large copper-molybdenum royalty.
Leeville (Nevada), Karlawinda (Australia), and multiple West African gold royalties.
Balance Sheet: Cash and equivalents US$53.1 million, working capital US$80.1 million as of December 31, 2025. No debt post-merger adjustments.
2026 Guidance: Cash flow in the upper US$70s to low US$90s million; GEOs between 17,000 and 21,000.
The dividend is fully covered by cash flow, providing a strong foundation for the XAUT option.
How Mining Companies Use Tokenized Gold – The Elemental Model
Elemental’s approach shows a practical template for other mining companies:
Generate cash flow from physical assets (royalties on producing mines).
Declare a dividend in fiat currency.
Offer shareholders the election to receive equivalent value in tokenized physical gold (XAUT).
Partner with established tokenized-gold issuers (Tether) for credibility, liquidity, and redemption infrastructure.
This model reduces friction for investors who want gold exposure without physical storage or custody costs while giving the company access to crypto-native capital pools.
How mining companies use tokenized gold is no longer theoretical — it is now operational through Elemental’s dividend election, creating a new channel for capital raising, shareholder engagement, and portfolio diversification in the mining crypto space.
Risks and Important Considerations
While innovative, tokenized gold dividends carry risks:
Volatility: XAUT price tracks physical gold but can experience short-term premiums/discounts or liquidity gaps.
Regulatory uncertainty: Digital asset regulations continue to evolve globally.
Counterparty risk: Although XAUT is fully backed and attested, it still relies on Tether’s operations.
Tax implications: Receiving XAUT may have different tax treatment than cash dividends depending on jurisdiction.
Eligibility: Only registered shareholders qualify for the election; street-name holders may default to cash.
Investors should review all disclosures and consult tax advisors.
This article is not investment advice. Tokenized assets and mining investments involve substantial risk of loss. Consult qualified professionals.
Conclusion
Elemental Royalty’s decision to offer its maiden dividend in Tether Gold (XAUT) tokens marks a historic milestone: gold tokenization is officially entering the mining sector. By giving shareholders the choice between cash and tokenized physical gold, Elemental has created a practical bridge between traditional royalty cash flows and digital gold investment, tokenized gold, and blockchain in mining industry.
This move highlights the accelerating digital transformation in mining and the growing role of tokenization of commodities. For investors interested in tether gold, mining crypto, and the intersection of hard assets with blockchain technology, Elemental’s XAUT dividend provides a real-world case study of how mining companies can innovate while delivering value to shareholders.
Thewealthyminer.com elite investment club provides members with exclusive insights into emerging trends like tokenized royalties, blockchain in mining, and high-conviction opportunities at the intersection of traditional mining and digital assets.
This article is based exclusively on Elemental Royalty’s official press releases (February 17 and March 20, 2026), SEDAR+/NASDAQ filings, Dave Cole’s statements in the watched videos (March 26, 2026), and Tether’s public attestations. All dates, dividend amounts, share counts, and transaction details are reported exactly as disclosed. This is not investment advice. Mining and digital asset investments involve substantial risk of loss. Consult qualified professionals.
Author
Ben McGregor authors the Weekly Roundup at CanadianMiningReport.com, providing sharp analysis of the metals and mining sector. With a talent for spotting trends, Ben distills complex market shifts into clear, engaging insights on TSXV junior miners. His weekly updates cover gold, copper, uranium, and more, blending data-driven perspectives with a knack for identifying opportunities. A vital resource for investors, Ben’s work navigates the dynamic junior mining landscape with precision.