Tether Introduces Scudo: Simplifying Gold Transactions in a Digital Era

Tether has announced the launch of Scudo, a new unit of account for Tether Gold, known as XAU₮. This is in the wake of record-breaking prices experienced by gold. Inflation and uncertainties about changes in the interest rate environment and growing geopolitical tensions have influenced the adoption of the safe-haven asset. Gold has been the most affected by this trend.

Gold’s rise in 2025 indicated greater concerns about currency reliability. Central banks purchased historic amounts of gold. There were people who turned to the precious metal to safeguard their buying power. Throughout history, the precious metal has primarily been used as money and the vehicle for settling transactions. Fiat money replaced it.

Tether believes that the current moment presents an opportunity to reinstate monetary function for gold. The company has already accomplished this in that it has converted physical gold into a digital asset called XAU₮. This has eliminated any obstacle that existed in terms of warehousing and transporting this asset. The physical asset now has global and instant ownership, and it exists in an internet-native economy.

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Tether Scudo Transforms Gold Into Everyday Currency

However, one important issue is still left unaddressed by digital access. The cost of gold is too expensive. In the normal pricing system, one needs small fractions of an ounce of the metal. This takes the form of long decimal numbers. This makes the metal unsuitable for spending purposes but rather for saving purposes.

To treat this, Tether created Scudo. It implements a simpler system of account. One scudo is equal to one thousandth of a troy ounce of gold, or XAU₮. This system is based on how fractions made units more practical in the past. A Bitcoin holder can relate this to the Satoshi.

With Scudo, pricing and transferring are now clearer and more convenient. The user can conduct a transaction in the whole or part amount, which does not require complicated mathematical calculations. A product or service can now be valued in Scudo instead of fractional ounces. This plays a key role in ensuring that the gold acts as a means of exchange and a store of value.

Tether also acts as one that adopts the change through the use of its technology layer called WDK. This technology allows devs and organizations to create self-custodial wallets for any type and OS. The self-custodial wallets are compatible with XAU₮, stablecoins, and Bitcoin.

XAU₮ Market Expands as Scudo Simplifies Transactions

Scudo doesn’t alter the underlying structure of Tether Gold. XAU₮ is still 100% backed by physical reserves of gold held in secure vaults. The ownership of the underlying asset can still be traced on the blockchain by asset tracking features. The new unit of account will simply be a way of expressing the value of gold differently.

The launch of Scudo is in line with the overall strategy of Tether. It targets the modernization of access to traditional assets through the use of blockchain infrastructure. Through improvements in divisibility, Tether is making gold more integrated into the digital economy.

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