Tether, the issuer of the world's largest stablecoin USDT, has expanded its strategic investments by acquiring a 32% stake in Canadian-listed gold-focused royalty company Elemental Altus Royalties Corp. This move underscores Tether's commitment to integrating hard assets like gold and Bitcoin into its ecosystem while advancing its vision for a decentralized digital economy.
Key Highlights of the Acquisition
- Strategic Expansion: Tether Investments purchased 78,421,780 shares of Elemental (~31.9% ownership) via an off-market private agreement with La Mancha Investments.
- Optional Agreement: Tether secured rights to buy an additional 34,444,580 shares through subsidiary AlphaStream Limited, pending Elemental's approval by October 29, 2025.
- Long-Term Vision: CEO Paolo Ardoino emphasized this as part of building "financial infrastructure for the next century," aligning gold's stability with Bitcoin's innovation.
Why Gold Matters to Tether's Ecosystem
Gold strengthens Tether's reserve diversification, complementing its existing holdings:
- 80 metric tons of physical gold reserves.
- 10,000 BTC (~$1.1 billion at current prices).
- Tether Gold (XAUT), a gold-backed stablecoin.
👉 Explore how gold-backed assets enhance portfolio resilience
The Dual-Pillar Strategy: Gold and Bitcoin
Tether's investment strategy balances gold's historical value preservation with Bitcoin's growth potential:
- Gold: Acts as a hedge against inflation and currency volatility.
- Bitcoin: Offers decentralized, scarcity-driven appreciation.
This approach fortifies USDT's collateral while positioning Tether as a bridge between traditional and digital finance.
Market Context: Gold and Crypto Trends (2025)
- Gold Prices: Surged to $3,358/oz** on July 1 amid USD weakness and fiscal concerns, settling at **$3,334/oz (July 2).
- Bitcoin: Breached $110,000 in 2025, fueled by institutional adoption and macroeconomic shifts.
- USD Index (DXY): Fell 11% in H1 2025 to 97.09, a 3-year low.
👉 Discover how macroeconomic trends impact crypto assets
FAQs: Tether's Gold Move and Crypto Markets
Q: How does Tether's gold acquisition benefit USDT holders?
A: It enhances the stablecoin's collateral quality, adding tangible asset backing to mitigate volatility risks.
Q: Why combine gold and Bitcoin investments?
A: Gold offers stability; Bitcoin provides growth—diversifying reserves against market cycles.
Q: What’s the impact of USD weakness on crypto?
A: A weaker USD often drives capital into alternative assets like Bitcoin and gold, boosting their prices.
Q: Could Tether’s strategy influence other stablecoins?
A: Yes—competitors may follow suit to improve transparency and asset-backed credibility.
Looking Ahead: Tether's Next Steps
Tether's aggressive diversification signals a broader shift toward asset-backed crypto economies. With its gold and Bitcoin reserves, the company aims to:
- Stabilize USDT's peg during market turbulence.
- Pioneer hybrid financial models merging traditional and decentralized finance.
Keyword Integration: Tether, gold investment, Bitcoin reserves, USDT stability, Elemental Royalties, asset diversification, decentralized finance, macroeconomic trends.