Tether Borrows From Bitcoin Playbook With New Gold Pricing Unit

Tether has launched Scudo, a new unit of account tied to its gold-backed token XAUT, to reduce barriers to fractional gold ownership. The unit represents one-thousandth of a troy ounce of gold, aligning with the model used for Bitcoin’s smallest unit, the satoshi. The move aims to make gold more accessible for smaller transactions on digital platforms. Gold has seen strong demand as institutional and central bank purchases reached record levels in 2025, according to Tether.

The introduction of Scudo is part of a broader effort to bring traditional assets onto blockchain infrastructure. By dividing XAUT into smaller, more usable units, Tether hopes to enhance the utility of gold-backed tokens. XAUT is supported by over 1,300 gold bars in custody, with a current market capitalization of about $2.3 billion.

Scudo’s design mirrors Bitcoin’s satoshi, allowing users to denominate transactions in whole or partial units of the new measure. This approach simplifies the handling of small fractions of gold.

The company emphasized that the unit will make onchain gold transactions more practical as prices continue to rise.

Why Did This Happen?

Gold’s performance in 2025 has been one of the key drivers behind the new initiative. Prices climbed more than 65%, reaching over $4,550 per troy ounce, fueled by de-dollarization efforts and central bank buying. This trend has created a surge in demand for tokenized bullion, with gold-backed tokens reaching a combined market cap of $4.3 billion.

Tether’s CEO Paolo Ardoino framed the move as a step toward making gold more easily transactable on digital rails. He described gold as “the ultimate store of value alongside Bitcoin” in a social media post. The company noted that XAUT already addressed custody and storage challenges, but Scudo aims to improve divisibility.

How Did Markets Respond?

The tokenized gold market has shown strong growth in the past year, with XAUT accounting for roughly half of the sector’s total value. This growth aligns with broader investor interest in onchain safe-haven assets.

Bitcoin’s performance, however, has not matched gold’s momentum. While gold surged, Bitcoin ended 2025 with a decline of about 6%. This divergence highlights different investor dynamics between traditional and digital assets.

Analysts are watching how the new unit will affect adoption rates. If Scudo gains traction, it could expand the use of tokenized gold in everyday transactions. Tether also pointed out that the unit may help attract new users who find handling small fractions of gold impractical.

What Are Analysts Watching Next?

Gold’s continued price momentum is a key factor in the success of Scudo. Analysts from major banks project gold reaching $4,900 to $5,055 per ounce by December 2026. This forecast suggests that onchain gold demand could remain strong as investors seek alternative stores of value.

Another area of interest is how Scudo will integrate into existing financial infrastructure. Tether will need to ensure that the unit is supported by exchanges and DeFi platforms for widespread use. Institutional adoption and regulatory clarity will also play a role in the token’s success.

The broader trend of asset tokenization is expected to continue into 2026. As more traditional assets move onto blockchain networks, the demand for smaller, more flexible units may increase. Scudo represents one approach to making these assets more usable in everyday transactions.

Investors are also keeping an eye on Bitcoin’s performance. While gold has outperformed, Bitcoin’s recent ETF inflows and institutional buying may help stabilize its price. If Bitcoin’s market dominance rises, it could influence the adoption of other tokenized assets.

Tether’s Scudo unit is part of a larger shift in how investors access and transact in precious metals. The ability to buy and sell fractional gold in smaller units may help bridge the gap between traditional and digital markets. As the year progresses, further developments in tokenization and gold demand will shape the sector’s trajectory.