Tether Launches “Scudo” Unit to Make Gold Token Trading Easier

Cryptocurrencies are considered a high-risk asset class. Investing in them may result in the loss of part or all of your capital. The content on this website is intended solely for informational and educational use and should not be interpreted as financial or investment advice.
Why Trust Us
Why Trust Us
Tether Launches “Scudo”

Stablecoin issuer Tether announced on Tuesday that it has introduced a new unit of account called “Scudo” for Tether Gold (XAUT), its gold-backed digital token, in a move aimed at making small-value gold transactions more intuitive and accessible.

A New Unit Designed for Micro Gold Transactions

According to Tether, one Scudo represents exactly one-thousandth (1/1,000) of a troy ounce of gold, making it equivalent to 1/1,000 of one XAUT token. The new denomination is designed to eliminate the complexity of dealing with long decimal values when trading fractional amounts of tokenized gold.

As gold prices have surged to record highs in USD terms, users increasingly face cumbersome calculations when buying or transferring small portions of gold. Tether said the introduction of Scudo directly addresses this practical challenge.

The concept is comparable to Bitcoin’s smallest unit, the Satoshi, which enables microtransactions by breaking down one BTC into smaller, easy-to-handle denominations. Similarly, Scudo aims to make gold more usable in everyday digital financial activity.

Tether emphasized that the launch of Scudo does not alter XAUT’s underlying structure, backing, or redemption mechanism. Each XAUT token remains fully backed by physical gold stored in Swiss vaults, with holders retaining direct ownership claims on the underlying metal.

Rising Gold Demand Meets Digital Friction

The move comes amid record global gold prices and a sharp rise in demand for gold as an inflation hedge. Throughout 2025, gold prices in USD climbed significantly, driven by persistent inflation concerns, interest rate uncertainty, and aggressive gold accumulation by central banks.

While gold remains one of the most trusted stores of value, Tether noted that its usability as a medium of exchange has lagged, particularly in digital environments. The difficulty of pricing and transacting fractional gold amounts has been a recurring friction point for users.

Tether also pointed to the long-term inflationary pressure created by fiat currency expansion, arguing that interest in neutral stores of value such as gold is resurging among both institutional and retail investors. In this context, Scudo is positioned as a tool to enhance gold’s practicality without compromising its role as a hedge.

For long-term crypto investors seeking diversification and capital preservation, gold-backed digital assets like XAUT continue to gain appeal.

Infrastructure Expansion and Market Growth

The rollout of Scudo forms part of Tether’s broader strategy to modernize access to traditional asset classes through blockchain infrastructure.

Alongside Scudo, Tether has released new technical layers that enable companies, developers, and AI-driven crypto agents to deploy self-custody wallets capable of handling XAUT, other stablecoins, and Bitcoin.

Tether CEO Paolo Ardoino stated that gold, alongside Bitcoin, is once again proving its role as an ultimate store of value. He added that lowering barriers to ownership, pricing, and transfer is essential, noting that user experience remains one of the biggest challenges in the digital asset industry.

Market data shows that Tether Gold’s market capitalization doubled within several months leading up to December 2025, reflecting strong demand for gold exposure without the complexities of physical storage or custody.

Tether believes Scudo could strengthen gold’s role in both value preservation and exchange within the digital economy, enabling simpler pricing, accounting, and more seamless participation in everyday financial activity.

 

By Patrick Johnson

Patrick Johnson is a seasoned crypto journalist and analyst with a sharp eye for emerging trends in blockchain, DeFi, NFTs, and Web3 innovation. With a background in tech writing and years of experience tracking digital assets, Patrick breaks down complex topics into clear, actionable insights for investors, builders, and curious readers alike. His work spans market analysis, crypto regulation, decentralized finance ecosystems, and interviews with founders shaping the next phase of the internet. Patrick's writing has appeared in leading crypto publications and has earned a reputation for depth, clarity, and a no-hype approach to crypto journalism. When he’s not decoding the latest protocol upgrade or reporting on DAO governance shifts, you’ll find him experimenting with smart contracts or hiking off-grid, because even crypto authors need to unplug sometimes.