Tether Expands Gold Strategy With $100M Elemental Deal

Tether, the world’s largest stablecoin issuer, has expanded its gold-focused investment strategy with a new $100 million investment in Elemental Altus Royalties, a Canadian gold royalty company. The move further strengthens its commitment to diversifying crypto profits into precious metals.

The announcement comes as Elemental confirmed its merger with EMX, creating one of the largest platforms in the royalty sector. Tether’s additional capital builds on its earlier $105 million investment in June, which secured a 37.8% stake in the Toronto-listed firm.

Juan Sartori, Tether’s head of business initiatives, emphasized that gold remains a key pillar in the company’s long-term diversification plan. He noted that Tether CEO Paolo Ardoino views gold as a “natural form of Bitcoin”, offering resilience and a hedge alongside digital assets.

Tether has engaged with multiple mining and investment companies to explore opportunities across the gold supply chain, including extraction, refining, trading, and royalties.

Backed by strong financial performance—earning $5.7 billion in profits in H1 2025 from U.S. Treasury holdings supporting its $168 billion USDT circulation—Tether is leveraging cash flows to expand into commodities and alternative assets.

Already, Tether holds $8.7 billion in gold bars stored in Zurich as part of its collateral reserves. It also manages XAUt, a gold-backed token with nearly $880 million market capitalization, further linking crypto with tangible assets.

Elemental’s royalty model, which invests in mining projects in exchange for production-based revenues, provides exposure to precious metals without direct operational risks. This model appeals to investors looking for commodity-linked returns at lower cost than mine ownership.

Beyond gold, Tether is also growing its presence in trade finance, supporting short-term funding for raw material shipments. Its deeper integration into commodities highlights a broader industry trend: merging digital currencies with physical assets. Similar strategies are being pursued by other players, including Blue Gold, which is preparing tokens tied to future mining output.

Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.