Tether’s Strategic Gold Expansion via Elemental Altus: A New Era for Real-World Asset Integration

Tether, the world’s largest stablecoin issuer, is making a bold move to diversify its asset base by deepening its commitment to gold-backed infrastructure through its partnership with Elemental Altus Royalties Corp. This strategic pivot reflects a broader industry trend toward integrating real-world assets (RWAs) into blockchain-based financial systems, while also addressing institutional demand for stable, tangible collateral. By expanding its stake in Elemental Altus—a Canadian gold royalty company—and leveraging its existing Bitcoin holdings, Tether is positioning itself as a bridge between traditional commodities and decentralized finance (DeFi).

A Gold-Backed Power Play

Tether’s investment in Elemental Altus has grown significantly in 2025. According to a report by Bloomberg, the company has committed an additional $100 million to the firm, raising its ownership stake to a substantial portion of the company, with a previously reported 37.8% stake as of June 2025 [1]. This move is part of a dual strategy to pair gold with Bitcoin, the latter of which Tether already holds in the form of over 100,000 BTC [3]. By acquiring a stake in a gold royalty firm, Tether gains indirect exposure to global gold production without the operational risks of mining, while also enhancing the transparency and resilience of its gold-backed token, XAUT [1].

Elemental Altus itself has been aggressively expanding its royalty portfolio. The company acquired a 2% Gross Revenue Royalty (GRR) on Genesis Minerals’ Focus Laverton Project in Western Australia for $52 million, alongside a 2% GRR on Brightstar Resources’ Jasper Hills Project. These acquisitions, as detailed in a report by Stock Titan, cover approximately 3.6 million ounces of gold resources, making them a cornerstone of Elemental’s portfolio [2]. Additionally, Elemental Altus secured a 2.0-2.5% Net Smelter Return (NSR) royalty on Pasofino Gold’s Dugbe Project in Liberia for $16.5 million, with potential contingent payments [2].

Institutional-Grade Exposure and the XAUt Advantage

The partnership between Tether and Elemental Altus is not just about asset diversification—it’s about institutional adoption. Elemental Altus has opened an institutional account to gain exposure to XAUt, Tether’s tokenized gold asset, to diversify its treasury and benefit from blockchain-based flexibility and security [5]. This mutual integration highlights a growing appetite among institutional investors for commodity-backed digital assets that combine the stability of gold with the efficiency of blockchain technology.

Tether’s CEO, Paolo Ardoino, has emphasized the strategic alignment between Elemental Altus’s royalty model and Tether’s vision for a decentralized financial infrastructure. As stated in a Tether press release, the partnership supports the development of future commodity-backed digital assets, potentially expanding beyond gold to other RWAs [4]. This forward-looking approach could attract institutional investors seeking to hedge against macroeconomic volatility while leveraging the programmability of digital tokens.

Strategic Implications for Tether and the Market

Tether’s gold expansion via Elemental Altus underscores a critical shift in the stablecoin industry. By anchoring its stablecoin ecosystem to both Bitcoin and gold, Tether is addressing concerns about the volatility and liquidity of purely crypto-collateralized assets. Gold, as a centuries-old store of value, provides a counterbalance to Bitcoin’s price swings, creating a more resilient financial infrastructure.

Moreover, the merger of Elemental Altus with EMX Royalty Corporation—creating a mid-tier gold-focused royalty company—further amplifies Tether’s exposure to a globally diversified portfolio of gold-producing royalties [3]. This merger, coupled with Tether’s $100 million investment in the new entity, signals a long-term commitment to gold as a strategic asset.

For institutional investors, the integration of XAUt into Elemental Altus’s treasury offers a novel way to access gold without the logistical challenges of physical storage or traditional commodity markets. As noted in a Coinglass report, this move could catalyze broader adoption of tokenized gold among institutional players seeking stability and regulatory clarity [1].

Conclusion

Tether’s strategic gold expansion via Elemental Altus represents a masterstroke in the evolving landscape of RWAs. By combining the time-tested value of gold with the innovation of blockchain, Tether is not only diversifying its asset base but also setting a precedent for how traditional commodities can be integrated into digital finance. As institutional demand for stable, transparent, and programmable assets grows, Tether’s dual focus on Bitcoin and gold positions it as a key player in the next phase of financial infrastructure.

Source:
[1] Tether Expands Gold Strategy by Adding to Stake in Canadian Firm [https://www.bloomberg.com/news/articles/2025-09-05/tether-expands-gold-strategy-by-adding-to-stake-in-canadian-firm]
[2] Elemental Altus Acquires $52M Laverton Gold Royalty [https://www.stocktitan.net/news/ELEMF/elemental-altus-expands-royalty-portfolio-with-cornerstone-laverton-f818udydbdk7.html]
[3] ELEMENTAL ALTUS AND EMX TO MERGE TO CREATE [https://finance.yahoo.com/news/elemental-altus-emx-merge-create-003900824.html]
[4] Tether Acquires Strategic Stake in Elemental Altus to Deepen Push into Gold and Hard Asset-Backed Financial Infrastructure [https://tether.io/news/tether-acquires-strategic-stake-in-elemental-altus-to-deepen-push-into-gold-and-hard-asset-backed-financial-infrastructure/]
[5] Elemental Altus to Gain Exposure to Digital Gold Through Tether Gold (XAUt) [https://elementalaltus.com/elemental-altus-to-gain-exposure-to-digital-gold-through-tether-gold-xaut/]