Tether Acquires Significant Stake in Elemental Altus Royalties – Coincu

Tether Investments has acquired a 31.9% stake in Canadian-based Elemental Altus Royalties. This strategic move highlights Tether’s efforts to strengthen its Tether Gold initiative.

This acquisition aligns with Tether’s long-term strategy to bolster its digital assets with tangible commodities like gold, indicating a potential shift in the real-world asset backing for digital tokens.

Tether Secures 31.9% in Elemental Altus Royalties

Tether Investments has purchased approximately 31.9% of Elemental Altus Royalties. The deal involves acquiring 78,421,780 common shares from La Mancha Investments, positioning Tether as a cornerstone shareholder. This purchase enhances Tether’s strategy to use gold and reinforces its backing for Tether Gold (XAUT).

Through this deal, Tether aims to deepen its institutional reserve collateralization strategy. Tether obtained options to acquire additional shares from Alpha 1 SPV, potentially gaining a majority stake, which could impact the valuation narrative around RWA-backed tokens globally.

“This investment reflects our long-term confidence in the fundamentals of gold and its critical role in financial markets. Elemental’s royalty model provides diversified exposure to gold production around the world, aligning strategically with our vision for Tether Gold and future commodity-backed digital asset infrastructure.” — Paolo Ardoino, CEO, Tether Group

Paolo Ardoino, the CEO of Tether, stated this investment demonstrates Tether’s confidence in gold’s role within financial markets. The community has mainly responded with interest, highlighting a likely uptick in market confidence towards Tether’s reserve management strategies.

Tether Gold’s Strategic Capitalization on Global Market Trends

Did you know? Tether Gold (XAUT) represents a pioneering move for digital asset collateralization that echoes similar strategies seen with MakerDAO’s U.S. Treasuries backing, potentially setting a new standard in stablecoin market approaches.

According to CoinMarketCap, Tether Gold (XAUt) is currently priced at $3,379.69, with a market cap of $833,173,522.63. Its 24-hour trading volume is $26,663,197.05, showing a 35.10% change. The XAUt price rose by 1.64% over 24 hours, demonstrating increasing investor interest and confidence.

Insights from Coincu research suggest this acquisition could influence both financial and market perceptions of stablecoins. Leading experts highlight potential regulatory attention, considering this a major precedent for digital tokens backed by real-world assets like gold, affecting the broader digital and financial market infrastructure.