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Scudo represents 1/1,000 of a troy ounce, simplifying digital gold pricing by avoiding long decimals while keeping XAU₮ fully backed.
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The new unit does not change XAU₮ reserves, custody, or redemption, with physical gold still stored in secure Swiss vaults.
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Scudo aligns with rising gold demand in 2025, as XAU₮ market cap doubled to $2.3B and usability became a key focus.
Tether on Tuesday announced Scudo, a new unit of account for its gold-backed token, Tether Gold (XAU₮). The company said the change aims to make digital gold easier to price and transfer as gold prices hit record levels in 2025. The launch applies globally and introduces Scudo as a smaller denomination without changing XAU₮’s physical gold backing.
How Scudo Changes Gold Pricing
According to Tether, one Scudo equals one-thousandth of a troy ounce of gold, or 1/1,000 of XAU₮. Notably, this structure reduces the need for long decimal values when pricing goods or services. Instead, users can quote prices in whole or partial Scudo units.
Tether explained that XAU₮ already digitized physical gold by tokenizing ownership on blockchain networks. However, pricing in fractional ounces often created usability challenges. Therefore, Scudo serves as a clearer measurement unit, similar to Bitcoin’s satoshi denomination. On Tuesday, one Scudo traded near $4.48, reflecting prevailing gold prices.
Backing, Custody, and On-Chain Verification
Tether stated that Scudo does not alter XAU₮’s structure, issuance, or reserves. Each XAU₮ token remains fully backed by physical gold bars stored in secure vaults. Ownership verification continues through Tether’s on-chain asset tracking tools.
According to Tether’s disclosures, the company holds more than 1,300 gold bars, totaling about 16.2 metric tons, backing XAU₮. The firm also allows token holders to redeem XAU₮ for physical gold, including delivery within Switzerland. In addition, BDO Italia prepared Tether’s first XAU₮ attestation report last year.
Market Context and Broader Strategy
Tether introduced Scudo amid strong gold demand in 2025, driven by inflation concerns and record central bank purchases. The company reported that XAU₮’s market capitalization recently doubled, reaching about $2.3 billion. Meanwhile, Tether said it held 116 metric tons of gold by the end of the third quarter.
Paolo Ardoino, Tether’s chief executive, said Scudo aims to improve accessibility and daily usability. Alongside this effort, Tether has released its Wallet Development Kit, or WDK. The toolkit supports self-custodial wallets that can hold XAU₮, USDT, and Bitcoin, expanding digital access to tokenized assets.
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