Tether Pushes Fractional Gold Payments With New Scudo Unit

Tether, the largest stablecoin issuer, has introduced a new fractional gold-backed stablecoin called Scudo. The token allows investors to hold and transact in gold through blockchain technology, expanding Tether's exposure to physical commodities. The move marks a strategic shift from its traditional fiat-backed stablecoins, aiming to diversify its reserves and attract new users interested in precious metals. Scudo is expected to compete with other gold-backed tokens in the market, such as those from other stablecoin issuers.

The new stablecoin is part of Tether's broader strategy to integrate real-world assets into its ecosystem. Tether has been accumulating gold reserves in recent quarters, with holdings reaching 116 metric tons by the end of 2025. The introduction of Scudo aligns with this accumulation and reflects Tether's long-term vision of bridging blockchain and traditional finance. The company aims to offer a more tangible and stable store of value backed by physical gold.

Tether's CEO, Paolo Ardoino, emphasized that Scudo is designed to meet growing demand for gold-backed digital assets. He stated the initiative reflects Tether's commitment to innovation and financial inclusion. The company's previous investments in QR payment platforms like SQRIL also indicate its focus on expanding stablecoin adoption in emerging markets. By combining physical gold with blockchain infrastructure, Tether aims to simplify access to precious metals for a global user base.

Why Did This Happen?

Tether's push into gold-backed stablecoins comes amid a broader trend of investors seeking alternative assets. Gold prices surged 64% in 2025, reaching record highs due to geopolitical tensions and expectations of U.S. rate cuts. This surge has driven demand for digital representations of gold, especially among retail investors and institutional players looking to hedge against macroeconomic risks.