On Thursday, Tether, the powerhouse behind the widely used stablecoin USDT, announced the introduction of Scudo, a new unit of account designed to enhance the usability of Tether Gold (XAU₮).
This move comes amid a historic rally in gold prices, driven by geopolitical tensions and economic shifts, making the commodity a focal point for investors looking for stability.
Tether’s New UnitHowever, Tether recognized a significant barrier that remained: for everyday transactions or pricing goods, working in fractions of an ounce can become cumbersome.
One Scudo is defined as 0.001 troy ounce of gold—1/1000 of one XAU₮—which makes it easier to price and transfer gold-backed values. This approach allows users to transact in whole or partial Scudo units instead of dealing with complex decimal fractions of XAU₮.
Paolo Ardoino On ScudoGold is once again proving its role as the ultimate store of value alongside Bitcoin. XAU₮ makes gold digital, and now with Scudo, we are lowering the barrier to entry so that anyone can own, easily price, and transact even the smallest fraction of the historical world’s most trusted asset.
Tether Gold remains fully backed by physical gold held in secure vaults, with ownership verifiable on-chain via Tether’s asset-tracking tools. Scudo does not change the structure or backing of XAU₮, but provides a simpler way to measure and transact gold value, particularly as prices continue to climb.
Featured image from DALL-E, chart from TradingView.com
