In a strategic move to diversify its asset portfolio, Tether, the issuer of the world's largest stablecoin USDT, has recently acquired a significant stake in a gold-focused royalty company. The company, known as Elemental Altus Royalties Corp., is a Canadian-listed firm specializing in precious metals royalties. This investment marks a pivotal step for Tether as it seeks to deepen its exposure to gold as a safe-haven asset.
On June 10, 2025, Tether Investments secured a 31.9% stake in Elemental Altus by acquiring 78,421,780 common shares, an investment valued at approximately $82 million. This acquisition aligns with Tether's broader strategy to balance its holdings between digital assets like Bitcoin and traditional assets such as gold, which it refers to as a 'dual pillar strategy'.
Tether's interest in gold is not new; the company already offers Tether Gold (XAUt), a digital token backed by physical gold. However, this latest move into royalty investments represents a more direct involvement in the gold market, providing Tether with potential long-term revenue streams from mining operations without the operational risks of mining itself.
The decision to invest in Elemental Altus comes at a time when gold prices are experiencing heightened interest due to global economic uncertainties. By increasing its exposure to gold royalties, Tether aims to provide additional stability to its reserves, which also include over 100,000 BTC, further solidifying its position in the cryptocurrency ecosystem.
Industry experts see this as a signal of Tether's intent to diversify beyond cryptocurrencies and stablecoins. The investment could also inspire confidence among USDT holders, showcasing Tether's commitment to backing its stablecoin with a diversified and robust portfolio of assets.
As Tether continues to expand its financial footprint, the crypto community will be watching closely to see how this gold royalty investment impacts the broader market. This strategic diversification could set a precedent for other stablecoin issuers to explore traditional asset classes as a means of enhancing stability and trust.
Alfred Lee
