TL;DR
- Tether launched Scudo as a new unit of account for XAUT, redefining how gold value is expressed and transferred on-chain.
- Each Scudo represents one-thousandth of a troy ounce and of one XAUT, allowing the use of whole numbers and simplifying digital pricing and payments.
- The backing remains unchanged: XAUT continues to be fully supported by physical gold held in Swiss vaults.
Tether introduced Scudo, a new unit of account for XAUT, its gold-backed digital asset. The change does not create a new token or alter the existing structure. It reshapes how value is measured and transferred.
Each Scudo equals one-thousandth of a troy ounce of gold and, by definition, one-thousandth of an XAUT. The goal is to operate with whole numbers and move away from long decimals that complicate pricing and payments.
Scudo Will Improve Digital Gold Trading
Spot gold is currently trading around $4,460 per ounce, following a surge driven by persistent inflation, record central bank purchases, and sustained demand for safe-haven assets. That backdrop has increased interest in instruments that offer direct exposure to gold without logistical complexity. XAUT handles custody and verification. Scudo targets usability.
Until now, transacting gold on-chain meant dealing with small fractional ounces expressed through unintuitive decimals. Paying 0.002 ounces does not fit naturally within a payment context. With Scudo, that same transaction is expressed as 2 units. The change lowers operational complexity and makes pricing easier in digital markets.
The backing structure will not change. XAUT tokens remain fully backed by physical gold stored in Swiss vaults, with allocations publicly verifiable. Scudo represents a smaller fraction of the same underlying gold. It does not alter reserves, custody, or audit mechanisms.
Tether Is One of the Largest Physical Gold Holders
This adjustment will also play a key role in improving market accessibility. By enabling smaller units, XAUT can be traded in lower amounts and used for gold-backed microtransactions. That significantly expands its range of use, not only as a store of value but also for frequent transfers and more precise liquidity allocation.
Tether has built a sizable gold treasury. By the end of 2025, the company held more than 116 metric tons of gold, placing it among the largest private gold holders within the crypto ecosystem. In addition, the company developed WDK, a technology layer designed to create self-custodial wallets compatible with XAUT, stablecoins, and Bitcoin.
