Tether Launches Scudo for Easier Gold Transactions
Instead of launching a new product, Tether has chosen a quieter route: changing how digital gold is counted. On January 6, the company introduced Scudo, a smaller denomination for its gold-backed asset, designed to make transactions more intuitive at a time when gold prices are anything but small.
Scudo represents one-thousandth of a troy ounce of gold and, by extension, one-thousandth of an XAUT token. Nothing new has been created on-chain. The gold remains exactly where it was before, locked in professional vaults, and the total supply of XAUT has not been altered. What has changed is simply the unit users see and interact with.
- Tether introduced Scudo as a smaller denomination for Tether Gold, simplifying how users price and transfer gold value on-chain.
- Scudo does not change XAUT’s backing, custody, issuance, or fee structure; it is only a new unit of account.
- The update comes as gold maintains strength while crypto markets remain volatile, increasing interest in gold-backed digital assets.
The decision reflects a usability problem rather than a financial one. As gold prices surged to record levels, moving modest amounts of value increasingly meant dealing with awkward decimal strings. Scudo replaces that friction with clean, whole-number pricing that better fits everyday transfers.
A Denomination Shift, Not a New Asset
Tether has been explicit that Scudo is not a token, a fork, or an upgrade to XAUT’s economic model. Issuance rules remain intact. Redemption still works the same way. Custody arrangements are untouched. Even the fee structure stays exactly as it was, with costs only applied when XAUT is minted or redeemed.
Transparency is unchanged as well. Holdings can still be verified on-chain, with each XAUT token continuing to map directly to physical gold bars held in secure storage. The new unit simply sits on top of the existing system, acting as a more user-friendly layer.
Paolo Ardoino described the change as a way to make gold ownership feel more accessible in a digital setting, especially for users who want exposure without committing to large sums or dealing with complex price calculations.
Why the Timing Matters
The rollout comes amid a clear divergence between traditional safe-haven assets and high-volatility markets. Gold has remained firmly in trend, reaching successive record highs in late 2025 and still trading near elevated levels despite a modest pullback. Its ability to hold value through uncertainty has reinforced its role as a defensive asset.
At the same time, crypto markets have struggled with sharp swings. Bitcoin surged to new highs before retracing aggressively, failing to sustain rebounds as traders rotated away from risk. That contrast has not gone unnoticed.
As volatility returned, interest shifted toward assets with more stable price behavior. Gold-backed tokens gained relevance in that environment, offering exposure to physical gold without leaving the blockchain. Scudo fits directly into that trend by making smaller allocations easier to manage and transact.
Making Digital Gold More Practical
Rather than chasing headlines with new products, Tether’s move targets a practical bottleneck. High gold prices made fractional ownership feel unintuitive. Scudo removes that barrier without altering the fundamentals that underpin XAUT.
The result is a more granular, user-friendly way to interact with gold on-chain – one that aligns with growing demand for stability as markets remain uneven. In that sense, Scudo is less about innovation and more about refinement, positioning digital gold as a usable financial tool rather than a static store of value.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
