• bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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Tether gold investment strategy

Tether’s gold investment strategy boosts long-term asset backing and ecosystem resilience

Tariq Al-Mansouri

Tether’s gold investment strategy is entering a new phase with the company acquiring a stake in Elemental.

The stablecoin issuer, through its investment arm, bought 31.9% of the Canadian precious metals royalty firm. This $89.2 million move signals Tether’s deeper commitment to real-world, stable assets like gold.

The investment in Elemental gives Tether indirect access to global gold production. Using a royalty and streaming model, the company avoids the risks of direct mining operations. Instead, it profits from royalties or discounted metal purchases. This model fits Tether’s goal of supporting its ecosystem with long-term asset stability.

With this acquisition, Tether now owns over 33.7% of Elemental’s shares. It also holds the option to buy up to 47.7% of the company by late 2025. Tether’s approach isn’t just about profit — it’s also about building a transparent and solid foundation for the digital economy.

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Tether strengthens its ecosystem with real-world gold exposure

Tether’s broader vision includes gold and bitcoin as core components of its reserve structure. The company recently disclosed holdings of over 100,000 BTC and nearly 80 tons of physical gold. This real asset backing is critical to maintaining confidence in Tether’s digital products, including the gold-backed Tether Gold (XAUT).

According to Tether CEO Paolo Ardoino, gold is a time-tested store of value, complementing bitcoin’s role as a hedge against inflation. This two-asset strategy underpins Tether’s mission to lead in decentralized financial infrastructure.

The investment in Elemental also opens doors for collaboration on corporate governance and long-term planning. Tether has made it clear that it wants a say in shaping the company’s growth — but only under regulatory and market guidelines.

Tether’s gold investment strategy anchors trust in the digital economy

The Elemental stake aligns with Tether’s ambition to move beyond just digital tokens. Backing its stablecoins with real assets like gold adds tangible value to its ecosystem. It’s a powerful message: Tether wants its future to be grounded in assets, not just algorithms.

By securing a strategic position in the gold industry, Tether is taking a bold step. It’s ensuring its digital future has a strong physical foundation — a blend of innovation and old-world value.

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Why did Tether invest in Elemental?

Tether invested in Elemental to gain exposure to global gold production while avoiding direct mining risks. By using Elemental’s royalty and streaming model, Tether can benefit from gold revenues without owning or operating mines. This aligns with its strategy to back its ecosystem with stable, long-term assets like gold and bitcoin. The investment adds depth to Tether’s reserves, helping to build a more robust, decentralized financial system.

What does this mean for Tether Gold (XAUT)?

The Elemental investment strengthens the credibility of Tether Gold (XAUT). Backed by physical gold, XAUT already plays a key role in Tether’s product lineup. By investing in a gold royalty firm, Tether increases its foothold in the gold sector. This may result in better resource access, higher asset stability, and greater trust in XAUT among investors and users.

Is Tether shifting focus away from crypto?

Not at all. Tether remains fully committed to crypto but is enhancing its ecosystem with real assets. Gold and bitcoin now form the core of its backing strategy. Tether’s leadership sees these as complementary — with bitcoin offering decentralized hedging and gold serving as a stable store of value. It’s not a shift away from crypto but a step toward building a hybrid digital-physical financial infrastructure.

Could Tether’s stake in Elemental affect the gold market?

While it may not shake the entire gold market, Tether’s investment is significant. It signals rising crypto-sector interest in precious metals. Tether is one of the largest holders of US Treasuries and now plays an influential role in gold through Elemental. If more digital finance firms follow suit, it could deepen the relationship between blockchain and the traditional commodities market.

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