-
Scudo represents 1/1,000 of a troy ounce, simplifying digital gold pricing by avoiding long decimals while keeping XAU₮ fully backed.
-
The new unit does not change XAU₮ reserves, custody, or redemption, with physical gold still stored in secure Swiss vaults.
-
Scudo aligns with rising gold demand in 2025, as XAU₮ market cap doubled to $2.3B and usability became a key focus.
Tether on Tuesday announced Scudo, a new unit of account for its gold-backed token, Tether Gold (XAU₮). The company said the change aims to make digital gold easier to price and transfer as gold prices hit record levels in 2025. The launch applies globally and introduces Scudo as a smaller denomination without changing XAU₮’s physical gold backing.
How Scudo Changes Gold Pricing
According to Tether, one Scudo equals one-thousandth of a troy ounce of gold, or 1/1,000 of XAU₮. Notably, this structure reduces the need for long decimal values when pricing goods or services. Instead, users can quote prices in whole or partial Scudo units.
Tether explained that XAU₮ already digitized physical gold by tokenizing ownership on blockchain networks. However, pricing in fractional ounces often created usability challenges. Therefore, Scudo serves as a clearer measurement unit, similar to Bitcoin’s satoshi denomination. On Tuesday, one Scudo traded near $4.48, reflecting prevailing gold prices.
Backing, Custody, and On-Chain Verification
Tether stated that Scudo does not alter XAU₮’s structure, issuance, or reserves. Each XAU₮ token remains fully backed by physical gold bars stored in secure vaults. Ownership verification continues through Tether’s on-chain asset tracking tools.
According to Tether’s disclosures, the company holds more than 1,300 gold bars, totaling about 16.2 metric tons, backing XAU₮. The firm also allows token holders to redeem XAU₮ for physical gold, including delivery within Switzerland. In addition, BDO Italia prepared Tether’s first XAU₮ attestation report last year.
Market Context and Broader Strategy
Tether introduced Scudo amid strong gold demand in 2025, driven by inflation concerns and record central bank purchases. The company reported that XAU₮’s market capitalization recently doubled, reaching about $2.3 billion. Meanwhile, Tether said it held 116 metric tons of gold by the end of the third quarter.
Paolo Ardoino, Tether’s chief executive, said Scudo aims to improve accessibility and daily usability. Alongside this effort, Tether has released its Wallet Development Kit, or WDK. The toolkit supports self-custodial wallets that can hold XAU₮, USDT, and Bitcoin, expanding digital access to tokenized assets.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
AI is no longer the exclusive domain of tech giants! Tether launches QVAC—has the moment arrived for everyone to have their own LLM?
Tether announced that its AI infrastructure, QVAC Fabric, has launched the world's first cross-platform BitNet LoRA fine-tuning framework, enabling large language models to be trained on consumer-grade hardware. This technology allows devices like smartphones to complete model fine-tuning, significantly reducing AI development costs, enabling AI decentralization, and making it possible to use AI anytime and anywhere in the future.
ChainNewsAbmedia2h ago
Tether Launches World's First Billion-Level AI Training Framework for Mobile, Compatible with iPhone and Samsung LoRA
Tether's QVAC division launched the world's first LoRA fine-tuning framework supporting Microsoft's BitNet architecture on March 17, significantly reducing AI model memory and computational requirements and enabling localized training on mobile phones. The technology allows users to perform personalized learning without uploading data, safeguarding privacy. Testing shows that modern smartphones can effectively fine-tune billion-parameter models, advancing the application potential of edge computing.
動區BlockTempo4h ago
Tether introduces the BitNet LoRA framework, supporting large model training on mobile devices
Gate News report: On March 17, Tether's QVAC Fabric launched the world's first cross-platform LoRA fine-tuning framework for Microsoft BitNet (1-bit LLM), significantly lowering the VRAM and computational thresholds for large model training. The framework supports LoRA fine-tuning and inference acceleration on Intel, AMD, Apple Silicon M series, and mobile GPUs (including Adreno, Mali, and Apple Bionic).
GateNews5h ago
Tether CEO Paolo Ardoino will attend the Mar-a-Lago Trump luncheon and deliver a speech
Gate News reported that on March 17, according to official sources, Tether CEO Paolo Ardoino will attend and speak at a Trump luncheon held at Mar-a-Lago.
GateNews5h ago
Tether CEO Paolo Ardoino to Attend Trump TRUMP Token Luncheon and Deliver Speech
TrumpMeme official announcement: Tether CEO Paolo Ardoino will attend and speak at the Trump TRUMP token luncheon. Trump will have lunch with 18 "superstars" and the top 297 holders on April 25 at Mar-a-Lago. The top 29 holders can also attend a special VIP reception.
GateNews5h ago
Delphi Digital: Sufficient collateral backing for stablecoins does not mean immunity from bank runs; the risk has shifted to the issuer level
Delphi Digital analysis points out that although Tether and Circle's stablecoins are backed by short-term Treasury bills and cash equivalents, they are not completely safe and still face bank run risks. The USDC depegging event in early 2023 demonstrated that stablecoin risks have shifted to issuers, highlighting the dangers posed by their centralization.
GateNews03-16 04:21
