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- Tether is set to raise its stake in a Canadian gold company to 37.8% with a $100M investment.
- The upcoming investment underscores Tether’s diversification strategy into gold royalties beyond its digital asset reserves.
Tether has announced it will invest an additional $100 million in Canadian gold royalty company Elemental Altus Royalties. This move will increase Tether’s ownership stake from 31.9% to approximately 37.8%.
According to Financial Times, the transaction is targeted for completion in the fourth quarter of 2025, marking a continuation of the world’s largest stablecoin company’s diversification strategy into the real asset sector.
In June 2025, Tether invested nearly $90 million to purchase shares in Elemental Altus, acquiring nearly a third of the company’s holdings.
The deal also includes an additional purchase option, potentially giving Tether nearly 47.7% of the shares, potentially even up to 51.8% control. Therefore, this latest investment is not a sudden move, but rather a continuation of a strategy that has been in place for a long time.
Tether Strengthens Gold Strategy Beyond Traditional Assets
The decision to increase its stake in Elemental Altus demonstrates Tether’s intention to move away from its reliance on traditional assets like US government bonds.
Tether’s reserves are known to be based on US Treasuries, Bitcoin, and other liquid assets. By entering the gold royalty business, Tether can enjoy income from gold production without the hassle of running a mining operation.
Interestingly, this business model provides direct exposure to the physical commodity, but with lower risks than mining companies themselves.
Not only that, this move also aligns with Tether’s narrative, which often refers to gold as “nature’s Bitcoin.”
CNF previously reported that, through its gold stablecoin product XAUT, Tether now holds reserves of 7.7 metric tons of gold, valued at approximately $819 million. While still significantly smaller than large ETFs like SPDR Gold Shares, XAUT is increasingly positioned as a core product within Tether’s suite of services.
Furthermore, the presence of XAUT provides a bridge between the stability of gold and the flexibility of digital assets, something investors are often seeking amid the fast-paced crypto market.
Furthermore, by combining direct investments in gold royalty companies and expanding its gold-backed stablecoin offerings, Tether appears to be building a dual strategy.
On the one hand, it strengthens real reserves, while on the other, it provides investors with a product that can be used for daily transactions, backed by gold. It’s clear that the company wants to position itself as a hybrid player between crypto and traditional commodities.
From Mining Royalties to Global Adoption Efforts
However, Tether’s diversification isn’t just about gold. In early July, the company also signed a memorandum of understanding with Zanzibar to support digital asset education and blockchain literacy.
This collaboration extends beyond the classroom, exploring the integration of stablecoins into the local payment system. In this way, Tether seeks to expand the adoption of crypto as a means of transaction, not just as a digital savings account.
Tether’s strategy appears increasingly multi-layered. On the one hand, it secures reserves through gold and mining royalties. On the other, it encourages global adoption through collaborations with local governments.
