Tether Introduces Scudo To Simplify Fractional Gold Ownership On-Chain
In Brief
Tether has introduced Scudo, a new sub-unit of XAU₮, to simplify gold-denominated transactions and make gold more accessible and usable in everyday digital commerce.
Stablecoin issuing company Tether announced the introduction of Scudo, a newly established unit of account linked to Tether Gold. This development is intended to support the renewed use of gold as a functional payment instrument that can be broadly accessed by market participants, occurring at a time when global interest in gold and prevailing market prices are reaching historically elevated levels.
During 2025, the price of gold has advanced to record thresholds, influenced by sustained inflationary pressure, uncertainty surrounding interest-rate policy, unprecedented levels of gold acquisition by central banks, and increasing demand for assets perceived as reliable stores of value during periods of financial volatility. As investors and institutions continue seeking mechanisms to maintain long-term purchasing power, conditions have emerged that favor reconsideration of gold as a widely accepted, dependable, and transparent form of settlement. Historically, gold fulfilled this role for extended periods before economic systems transitioned toward fiat-based monetary structures, a change that introduced expansive currency issuance, recurring inflationary cycles, and multiple instances of economic disruption.
For many individuals and organizations, the principal challenge has not been doubt about gold’s inherent value, but rather the practicality of integrating it into contemporary transaction systems. Tether Gold (XAU₮) previously addressed this issue by enabling the digital representation of physical gold ownership, a necessary evolution within an interconnected global economy that operates continuously through internet infrastructure and executes transactions at near-instant speed. In addition, Tether has released a technological framework known as WDK, which allows developers, enterprises, and automated systems to build, distribute, and manage self-custodial wallet applications across diverse hardware and operating environments. These wallets are designed to support XAU₮, stablecoins issued by other companies, and Bitcoin.
Despite these technological advancements, a remaining limitation has continued to affect gold’s suitability for routine commercial use. The pricing and exchange of goods based on fractional portions of an ounce frequently require extended decimal representations, which can be inefficient, unintuitive, and impractical for everyday transactions and price communication.
Simplifying Gold Transactions With Practical Sub-Unit For XAU₮
Scudo resolves this limitation by establishing a more straightforward measurement unit, reflecting the historical function of smaller currency denominations that allowed money to operate effectively in real economic activity rather than serving only as an abstract representation of stored worth. For individuals acquainted with Bitcoin, this structure is comparable in concept to the use of the “Satoshi” as a sub-unit of account designed to overcome similar practical limitations in value expression and transactional clarity.
Through the definition of one Scudo as equivalent to one thousandth of a troy ounce of gold, or correspondingly one thousandth of XAU₮, Tether Gold facilitates clearer price representation, smoother value transfers, and a more intuitive framework for interacting with gold-based value systems. Instead of relying on complicated decimal expressions of XAU₮, market participants are able to conduct transactions using complete or fractional quantities of Scudo, which significantly improves the usability of gold not only as a long-term store of value but also as an operational medium of exchange. Under this structure, goods and services may be denominated directly in Scudo units rather than in fractional ounce measurements, allowing gold to integrate more naturally into routine commercial and economic processes.
Scudo: Providing More Accessible Way To Express And Transfer Gold-Denominated Value
“Gold is once again proving its role as the ultimate store of value alongside Bitcoin,” said Paolo Ardoino, CEO of Tether, in a written statement. “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 world’s most trusted historical asset. User experience remains the most crucial weakness of the digital asset industry today. As Tether, the biggest financial inclusion success story in the history of humanity, with more than 500 million users across emerging markets, we make accessibility one of our utmost priorities,” he added.
XAU₮ continues to be entirely supported by corresponding quantities of physical gold stored within high-security vault facilities, with ownership and reserves transparently verifiable on-chain through Tether’s asset-monitoring systems. The implementation of Scudo does not modify the underlying structure, collateralization model, or reserve backing of XAU₮; rather, it introduces a more accessible method for expressing and transferring gold-denominated value, particularly in an environment where gold prices are maintaining upward momentum.
By December 2025, Tether Gold has demonstrated increasing adoption among participants focused on long-term capital preservation, portfolio risk distribution, and gaining exposure to gold without the logistical and custodial challenges traditionally associated with physical storage. This rising demand has contributed to the asset’s market capitalization expanding to twice its previous size within a relatively short time frame. XAU₮ provides direct linkage to physical gold while eliminating recurring custody costs, with charges limited to a single transaction fee applied during issuance or redemption.
The deployment of Scudo aligns with Tether’s wider objective of updating access to conventional asset classes through blockchain-based infrastructure, with the aim of making long-established stores of value more accessible, divisible, and operationally efficient within an increasingly digital economic landscape.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
