Tether Unveils Scudo: Making Gold Payments Simple and Fractional

Tether launches Scudo, a new unit for its gold-backed token, enabling easier, fractional gold transactions on-chain. Scudo represents one-thousandth of a troy ounce, simplifying payments and boosting accessibility.

Tether has introduced Scudo, a new unit of account for its gold-backed token Tether Gold (XAUT/XAU₮), aiming to simplify fractional gold ownership and transactions on blockchain networks. Scudo represents one-thousandth of a troy ounce of gold, allowing users to price, transfer, and use gold-backed assets in smaller, more intuitive denominations, similar to how satoshis function for Bitcoin. This innovation addresses the challenge of dealing with long decimal values when transacting in small fractions of gold, making gold-backed tokens more practical for everyday use and micro-transactions. The launch comes amid record-high gold prices and growing demand for tokenized gold as a store of value and payment method. Tether Gold remains fully backed by physical gold stored in secure vaults, with ownership verifiable on-chain. The Scudo unit does not alter the backing or structure of XAUT but enhances its usability and accessibility, potentially unlocking greater liquidity and adoption in the tokenized precious metals market. Tether has also released a technology layer to support self-custodial wallets for XAUT, other stablecoins, and Bitcoin, further expanding its ecosystem.