StableCOin issuer Tether’s Investment Arm has taken a minority share in Elemental Altus (ELE), a publicly listed noble metal investment company.
Tether Investments aims to diversify the assets that support its stablecoin USDT, the world’s largest token with a market value of $ 155 billion, and expanded to specific assets and precious metals, according to a message on Tuesday.
Tether acquired 78,421,780 joint shares in Elemental from La Mancha Investments, a Luxembourg-based mining investment company.
Elemental’s Toronto-listed shares rose nearly 23% to 1.77 Canadian dollars ($ 1.30) after the message. They closed at $ 1,53 Canadian Wednesday, 6.25% higher than before Tether’s investment. At the time of the press, Tether’s efforts are worth almost $ 88 million.
CEO Paolo Ardoino said the investment that saw Tether taking a share of about 33.7% of the shares in Elemental reflects his “confidence in the basic elements of gold and its critical role in the financial markets.”
“Elemental’s Royalty Model provides diversified exposure to gold production all over the world and adapts strategically with our vision for Tether Gold and Future Commodity-supported digital asset infrastructure,” he added.
Tether referred to increase his exposure to gold as a “double column strategy” along with his inventory of over 100,000 BTC ($ 10.7 billion).
With the regulation of stableecoiner on the horizon in the United States, issuers are preparing as Tether that the requirements must be complied with when it comes to the assets that support their symbols.
This can expand to diversification of assets. It was suggested by JPMorgan earlier this year that Tether could have to sell some of his BTC to comply with the proposed regulation.
