In a significant step toward reshaping the stablecoin and tokenized commodities landscape, Tether has acquired a 31.9% stake in Canadian precious metals royalty company Elemental Altus Royalties Corp.
The partnership with Elemental is more than just an investment; it’s a calculated move to gain diversified exposure to global gold production through a royalty and streaming model. This approach allows Tether to sidestep the operational risks of mining while securing royalties or discounted purchase rights for precious metals. With this acquisition, Tether’s total ownership in Elemental rises to 33.7%, making it the company’s largest shareholder.
The acquisition also strengthens Tether’s flagship gold-backed token, XAUT, which is tied to physical gold holdings. With over 100,000 BTC and nearly 80 tons of physical gold already disclosed in Tether’s reserves, this investment in Elemental further solidifies its commitment to tangible, real-world assets as the foundation for digital value.
Looking ahead, Tether has signed an agreement granting it the option to acquire additional shares in Elemental by October 2025, potentially increasing its stake to 47.7%.
As Ardoino aptly put it, “We believe in financial systems that are backed by real assets, not just promises.” With this investment, Tether is not just building its portfolio—it’s laying the foundation for a future where digital and tangible value coexist seamlessly.
In an era where financial systems are evolving rapidly, Tether’s approach could serve as a blueprint for integrating stability, diversification, and innovation into the world of crypto.
The stablecoin narrative is expanding, and tokenized commodities like XAUT are leading the charge into broader adoption.
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