Tether Gold Token XAUT's new unit "Scudo," can be bought with the price of a cup of coffee.

Tether Launches New Unit “Scudo” for Gold-Backed Token XAUT, Equal to One Thousandth of an Ounce of Gold (Approximately $5), Similar to Bitcoin’s “Satoshi” for Tiny On-Chain Gold Transactions
(Background: Ray Dalio of Bridgewater: U.S. debt crisis “on the edge” CBDC impact limited, gold can be allocated up to 15%)
(Additional context: Tether invests $150 million to acquire equity in Gold.com, integrating XAUT to accelerate gold token deployment)

Table of Contents

• Transfer gold with the price of a cup of coffee
• Honoring Italian coins: The historical origins of Scudo
• No change to the underlying structure

Tether announced the launch of a new measurement unit called “Scudo” for its gold-backed stablecoin Tether Gold (XAUT), defined as 1 Scudo = 1/1000 XAUT, or one-thousandth of a troy ounce of gold.

This concept is similar to Bitcoin’s “satoshi.” Bitcoin can be divided down to 8 decimal places, with 1 satoshi = 0.00000001 BTC, allowing users to participate in transactions without purchasing a whole Bitcoin. The new on-chain unit Scudo brings the same divisibility to gold tokens, enabling traders to send and receive gold on the blockchain without holding a full ounce.

Transfer gold at the price of a cup of coffee

Based on the current international gold price of approximately $4,990 per ounce, 1 Scudo is worth about $4.99, roughly the price of a Starbucks latte.

This means users can conduct gold transactions on the blockchain with very low thresholds. Previously, 1 XAUT represented 1 ounce of gold, costing nearly $5,000 per unit, which was not user-friendly for small transfers or daily payments. The introduction of Scudo marks a significant step from gold as an “investment tool” toward a “payment tool.”

Tether states that Scudo will enhance the daily usability of digital gold assets, providing investors and traders with more flexible operational experiences.

Honoring Italian coins: The historical origins of Scudo

The name “Scudo” is not arbitrary. Historically, the Scudo was a physical gold coin in 16th-century Italy, named after the Latin scutum (shield), due to the shield emblem on the coin’s front. It was the official currency of the Papal States until 1866, when it was replaced by the Italian lira.

Tether chose this name to cleverly connect the historical tradition of European gold currency with the digital gold era. It may also reflect the fact that many of Tether’s executives have Italian roots.

No change to the underlying structure

It is important to note that Scudo is purely a measurement unit adjustment and does not alter the physical gold backing, custody model, or issuance structure of XAUT. Currently, XAUT is backed by 1,329 gold bars totaling approximately 16.2 tons of physical gold stored securely in Swiss vaults.

Existing XAUT holders’ assets will automatically be displayed in Scudo units on compatible wallets and exchanges, requiring no additional action. Furthermore, Scudo will not incur any new recurring fees; XAUT will continue to operate under its original issuance and redemption cost structure.

The timing of the Scudo launch is quite significant. Since 2026, international gold prices have repeatedly hit record highs, reaching a peak of $5,602 per ounce on January 28. As of mid-February, gold prices remain high, oscillating between $4,900 and $5,100.

As gold prices rise, the price of 1 XAUT also surges, making small transactions more difficult. Against this backdrop, the introduction of Scudo responds to market demand. Currently, XAUT has a market cap of about $2.3 billion and is the leading on-chain gold token, with Scudo expected to further expand its use cases.