Tether Launches Scudo for Tether Gold to Simplify Transactions

Tether introduced Scudo, a new fractional unit for Tether Gold (XAUT), to make on-chain gold easier to price and use in transactions according to Crypto News. Scudo is defined as one-thousandth of a troy ounce of gold, or one-thousandth of a single XAUT token, addressing decimal complexity in gold-backed token transfers as reported. Tether emphasized that Scudo does not alter the physical gold backing or structure of XAUT, remaining fully collateralized by gold in secure vaults according to the company.

Tether introduced Scudo, a new unit of account for its tokenized gold product, Tether Gold (XAUT), to simplify transactions by enabling users to trade in whole or partial Scudo units instead of complex decimal fractions of XAUT according to Crypto News. This change aims to improve the usability of on-chain gold by making it more practical for everyday transactions and pricing. Scudo represents one-thousandth of a troy ounce of gold, similar to how Bitcoin uses satoshis to facilitate microtransactions as explained.

Tether Gold (XAUT) remains fully backed by physical gold stored in secure vaults, with ownership verifiable on-chain using Tether's asset reporting tools according to the company. There are no new recurring fees tied to Scudo, with XAUT continuing to carry only standard issuance and redemption costs as stated. The new unit is a denomination layer, not a new token or product according to Crypto News.

Tether's move aligns with the broader adoption of tokenized gold as global gold prices and demand reached record highs in 2025, driven by inflation concerns and central bank accumulation as reported. Analysts suggest that introducing smaller units like Scudo could help expand the use of on-chain gold in payments, lending, and cross-border settlement according to research.

What Is Scudo and How Does It Work?

Scudo represents one-thousandth of a troy ounce of gold, enabling users to transact in whole or partial units that are easier to understand according to Crypto News. Tether compared the approach to Bitcoin's use of satoshis, where smaller denominations make the asset more practical for payments rather than just long-term storage as explained.

The introduction of Scudo addresses the decimal problem by creating a smaller, intuitive denomination for XAUT according to Cryptonews. By transacting in Scudo rather than fractional ounces, users can price goods and services more naturally, improving gold's viability as a medium of exchange as reported.

What Are the Implications for XAUT and the Market?

Tether's introduction of Scudo is part of its broader strategy to modernize access to legacy assets through blockchain technology according to Cryptonews. The company has also released a developer-focused technology layer that allows firms and developers to deploy self-custodial wallets supporting XAU₮, other stablecoins, and Bitcoin as detailed.

By December 2025, Tether Gold's market capitalization had doubled within months, reflecting demand for gold exposure without traditional storage or custodial complexity according to reports. The launch of Scudo is expected to enhance XAUT's role in DeFi while maintaining its physical gold backing according to analysis.

What Are the Risks or Limitations?

Despite the potential benefits of Scudo, there are risks associated with gold price corrections or slower adoption compared to competitors as noted. XAUT faces competition from other tokenized gold platforms that offer similar services, and future growth will depend on DeFi utility expansion, regulatory clarity, and sustained volume according to industry analysis.

Institutions are adopting blockchain-based gold for 24/7 trading and fractional ownership, but challenges remain in terms of widespread adoption and integration into digital financial applications as reported. The success of Scudo will depend on how effectively it lowers barriers to entry and increases usability for everyday transactions according to MEXC.