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.