Tether Revolutionizes Digital Gold! Launches ‘Scudo’ Unit to Make Gold Payments as Simple as Cash

Tether, the preeminent issuer of stablecoins, has officially introduced "Scudo," a groundbreaking accounting unit for its gold-backed digital asset, Tether Gold (XAU₮). This strategic move is designed to simplify on-chain transactions and lower the barriers to entry for using gold as a functional currency. Much like how Bitcoin utilizes "Satoshis" to facilitate micro-transactions without dealing with confusing decimals, Scudo serves as a fractional denomination where one Scudo is equal to exactly one-thousandth (1/1,000) of a troy ounce of gold, or 0.001 XAU₮.

The introduction of Scudo comes at a pivotal time when gold prices have reached historic highs, recently trading near $4,500 per ounce. At such price levels, owning or transacting in full XAU₮ tokens—each representing one troy ounce—is financially out of reach for many retail investors. Furthermore, pricing everyday goods or services in tiny fractions of an ounce (e.g., 0.00045 XAU₮) creates significant cognitive friction for consumers. By denominating these values in Scudo, Tether effectively transforms gold from a static "store of value" into a dynamic "medium of exchange."

According to Tether, the Scudo unit does not change the underlying legal or physical structure of Tether Gold. Every XAU₮ token remains 100% backed by physical gold bars stored in high-security Swiss vaults, with ownership and reserves fully verifiable on-chain. Instead, Scudo acts as a user-friendly interface for the asset. This innovation addresses a long-standing hurdle in the decentralized finance (DeFi) space: the "decimal problem." By providing an intuitive unit of account, Tether expects to see increased adoption of gold-backed assets in payment gateways, decentralized protocols, and peer-to-peer transfers.

Industry experts view this as a major step toward the "financialization" of gold on the blockchain. As inflation and global economic volatility persist, the demand for stable, inflation-resistant assets is surging. Scudo makes the stability of gold accessible to a global audience, allowing users to send, receive, and price assets in a way that feels natural. Whether it is paying for a cup of coffee or settling a cross-border invoice, the ability to transact in whole Scudo units instead of complex decimals could be the catalyst that finally brings gold into the modern digital economy as a mainstream payment method.

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