Tether Doubles Down on Gold Strategy With Additional $100M Elemental Investment

Tether has invested an additional $100 million in Elemental Altus Royalties, the Canadian gold royalty company, as the stablecoin issuer deepens its strategy of deploying crypto profits into precious metals investments.

The investment coincides with Elemental's announced merger with rival EMX, creating a larger platform for Tether's gold exposure ambitions, the Financial Times reported. The transaction builds on Tether's initial $105 million investment in June that gave it a 37.8% stake in the Toronto-listed firm.

Juan Sartori, head of business initiatives at Tether, confirmed the investment forms part of the company's strategy to increase gold exposure through various channels. The approach reflects CEO Paolo Ardoino's view of gold as "natural Bitcoin" and a complement to digital assets.

Tether has pursued discussions with multiple mining and investment groups about participating across the entire gold supply chain, from extraction and refining to trading and royalty investments.

The world's largest stablecoin issuer generated $5.7 billion in profits during the first half of 2025 from interest earned on U.S. Treasury holdings backing its $168 billion USDT token. These substantial cash flows have enabled diversification beyond traditional Treasury investments.

Tether already holds $8.7 billion worth of gold bars in a Zurich vault as collateral for its stablecoin operations, making it one of the largest private gold holders globally. The company also operates XAUt, a gold-backed cryptocurrency token with an $880 million market capitalization.

Gold royalty companies like Elemental invest in mining projects in exchange for percentages of future production revenues, offering exposure to precious metals without direct operational risks. The business model appeals to investors seeking commodity exposure with lower capital requirements than mine ownership.

The investment strategy extends Tether's commodity involvement beyond gold, with the company building a significant trade finance business providing short-term funding for raw material cargoes. Tether's gold focus reflects broader interest in bridging digital currencies and physical assets. Other companies are exploring similar strategies, including Blue Gold's plans to launch tokens backed by future mining output.