Tether announced a new unit of measurement, "Scudo," for its gold-backed token, Tether Gold (XAUT), defined as 1 Scudo = 1/1000 XAUT , or one-thousandth of a troy ounce.
This concept is similar to Bitcoin's "satoshi." Bitcoin can be divided to 8 decimal places, with 1 satoshi = 0.00000001 BTC, allowing users to participate in transactions without having to purchase an entire Bitcoin. The new on-chain token unit, Scudo, brings the same divisibility to gold tokens, allowing traders to send and receive gold on-chain without needing to hold a whole ounce of gold tokens.
The price of a cup of coffee can be used to transfer gold.
With the current international gold price at approximately $4,990 per ounce, 1 Scudo is worth about $4.99, roughly the price of a Starbucks latte.
This means that users can trade gold on the blockchain with extremely low barriers to entry. Previously, 1 XAUT corresponded to 1 ounce of gold, with a unit price often approaching $5,000, making it unfriendly for small transfers or daily payments. The launch of Scudo represents a significant step forward for gold tokens, transforming them from "investment tools" into "payment tools."
Tether stated that Scudo will enhance the daily availability of gold digital assets, providing investors and traders with a more flexible operating experience.
A Tribute to Italian Gold Coins: The Historical Origins of Scudo
The name "Scudo" did not come out of thin air. Historically, the Scudo was a physical gold coin in 16th-century Italy. The name comes from the Latin word "scutum " (shield), named after the shield pattern on the obverse of the coin. It was the official currency of the Papal States until it was replaced by the Italian lira in 1866.
Tether cleverly uses this name to connect the historical tradition of European gold currency with digital gold in the blockchain era. This may also be partly due to the large Italian population among Tether's senior management.
Without changing the underlying structure
It is important to note that Scudo is merely an adjustment in the unit of measurement and does not change XAUT's physical gold backing, custody model, or issuance structure . Currently, XAUT is backed by 1,329 gold bars, approximately 16.2 metric tons of physical gold, stored in a secure vault in Switzerland.
Existing XAUT holders' assets will automatically be displayed in compatible wallets and exchanges in Scudo, requiring no additional action. Furthermore, Scudo will not incur new recurring fees, and XAUT will maintain its original issuance and redemption cost structure.
The timing of Scudo's launch is significant. Since 2026, international gold prices have repeatedly broken historical highs, reaching a record high of $5,602 per ounce on January 28. As of mid-February, gold prices were still fluctuating at high levels between $4,900 and $5,100.
As gold prices soar, the price of 1 XAUT has also skyrocketed, making small transactions even more difficult. Against this backdrop, the launch of Scudo can be seen as a response to market demand. XAUT currently has a market capitalization of approximately $2.3 billion, making it the leading on-chain gold token, and Scudo is expected to further expand its use cases.
