Tether, the issuer of the world’s largest stablecoin USDT, has made a bold move by acquiring a 32% stake in Elemental Altus Royalties Corp., a Canadian gold-focused firm, for $89 million. This strategic investment signifies Tether’s dedication to diversifying its reserves beyond traditional fiat currencies and integrating tangible assets like gold. This comes as the price of gold hits record highs, exceeding $3,374.66 USD/oz according to Trading Economics data. The acquisition aligns with a broader trend towards gold-backed financial infrastructure. 💰. Tether’s move challenges the traditional stablecoin model and positions it as a pioneer in merging cryptocurrency with traditional finance (TradFi). Read more: https://t.co/uYoPf5Rd7O — Tether (@Tether_to) June 12, 2025. This strategic investment aims to strengthen Tether’s Tether Gold (XAUT) and pave the way for DeFi integration in a market experiencing substantial growth in stablecoin supply. However, this bold move presents some challenges: heightened regulatory scrutiny, existing concerns regarding transparency and governance, and the potential impact of gold price fluctuations or regulatory changes on the overall stability of USDT. While some analysts are optimistic about Tether’s gold-backed approach as a future-proof strategy (particularly in the face of geopolitical uncertainties), others remain cautious. A definitive assessment of the long-term impact of this shift remains pending, with no peer-reviewed studies available yet. 🔍