Tether has announced a new unit of measurement for its gold-backed token Tether Gold (XAUT) — Scudo. One Scudo equals 1/1000 XAUT, or one-thousandth of a troy ounce of gold. The concept mirrors Bitcoin's satoshi: just as 1 sat = 0.00000001 BTC, allowing users to trade fractions of a Bitcoin, Scudo makes it possible to send and receive tiny amounts of gold on chain without holding a full ounce.
Gold Transfers at the Price of a Coffee
At current gold prices around $4,990 per ounce, 1 Scudo is worth roughly $4.99 — about the price of a Starbucks latte. This slashes the barrier to entry for on-chain gold transactions. Previously, 1 XAUT corresponded to 1 ounce of gold, costing nearly $5,000 per token, which was impractical for small transfers or everyday payments. With Scudo, Tether aims to shift gold tokens from being purely investment instruments toward becoming payment tools. Tether stated that Scudo will enhance the daily usability of gold digital assets, offering investors and traders more flexible operation.
Nod to Italian Gold Coin History
The name Scudo derives from the 16th-century Italian gold coin, itself from Latin scutum (shield), named for the shield emblem on its obverse. It was the official currency of the Papal States until replaced by the Italian lira in 1866. Tether's choice connects the historical tradition of European gold currency to the digital gold era on blockchain — possibly influenced by the many Italian members of Tether's management team.
No Change to Underlying Structure
Scudo is purely an accounting unit adjustment. It does not alter XAUT's physical gold backing, custody model, or issuance structure. The token is currently backed by 1,329 gold bars (~16.2 metric tonnes) held in Swiss vaults. Existing XAUT holders will automatically see their balances displayed in Scudo on compatible wallets and exchanges, with no action required. No new recurring fees are introduced; XAUT's existing issuance and redemption cost structure remains unchanged.
Timed for a Surging Gold Market
The launch timing is significant. Gold prices have repeatedly hit all-time highs in 2026, reaching $5,602 per ounce on January 28. As of mid-February, gold traded in a range of $4,900–$5,100. As the price of gold climbs, the unit cost of 1 XAUT becomes even more prohibitive for small transactions — making a fractional unit a natural market response. XAUT currently ranks as the leading on-chain gold token with a market cap of approximately $2.3 billion. Scudo is expected to broaden its use cases further.