Stablecoin Titan Tether Wants Gold to Be Used for Everyday Payments-Here's How

Tether has launched a new unit of account called Scudo for its gold-backed token, XAUT according to Cointelegraph. The initiative is aimed at making fractional gold transactions more accessible on blockchain networks. Each Scudo is equivalent to one-thousandth of a troy ounce of gold, simplifying the process of transferring and pricing small amounts of gold.

The introduction of Scudo mirrors the way Bitcoin uses satoshis to handle small units of value. This approach is intended to make XAUT more practical for everyday transactions, such as payments and remittances. Tether's CEO, Paolo Ardoino, highlighted that Scudo is designed to make gold more accessible and usable in the digital economy.

Gold prices reached record highs in 2025, driven by inflation concerns, geopolitical tensions, and a shift toward safe-haven assets. This outperformance compared to both equities and cryptocurrencies has increased interest in tokenized gold. Tether's XAUT token has a market capitalization of about $2.3 billion, and the sector's total market value is close to $4.3 billion.

Why Did This Happen?

Tether's introduction of Scudo is a response to the growing demand for digital gold. Institutional investors and central banks have been accumulating gold at an unprecedented rate, highlighting the metal's role as a store of value. Scudo aims to bridge the gap between traditional and digital finance by making gold transactions more intuitive.

The move also aligns with broader trends in the tokenization of real-world assets. As digital assets continue to evolve, the need for user-friendly interfaces and units of account becomes increasingly important. Scudo represents a step toward making gold a more functional and accessible asset on blockchain networks.

How Did Markets React?

The launch of Scudo has been well-received in the market. Investors see it as a potential game-changer for the gold-backed token market. The unit of account is expected to facilitate more frequent and smaller transactions, which could drive adoption and usage of XAUT.

Market analysts note that the timing of the launch coincides with a period of strong demand for gold. With bullion outperforming both equities and cryptocurrencies in 2025, the introduction of Scudo is seen as a strategic move to capture a growing segment of the market.

What Are Analysts Watching Next?

Analysts are closely monitoring how Scudo impacts the usability and adoption of XAUT. The success of the unit will depend on how easily it can be integrated into existing financial systems and how it performs in real-world transactions.

Investor sentiment is also a key factor. If Scudo gains traction, it could influence broader trends in the tokenization of precious metals and other assets. The ability to transact in smaller, intuitive units could make tokenized gold a more viable option for everyday financial activities.

Tether's move also raises questions about the future of gold in the digital economy. As more investors and institutions seek safe-haven assets, the role of tokenized gold is likely to expand. The success of Scudo could set a precedent for how other traditional assets are adapted for digital use.