Tether has launched a new accounting unit named Scudo for its gold-backed token XAUT, designed to improve transaction usability. Each Scudo represents one-thousandth of a troy ounce of gold, making it easier to price and transfer gold in smaller amounts. The company says this move simplifies how users transact with fractional gold units on blockchain.
Tether defined Scudo as one-thousandth of a troy ounce, equal to one-thousandth of an XAUT, for easier denomination. This change allows users to send and receive gold in whole or fractional Scudo units, avoiding long decimals. The company confirmed Scudo’s introduction aims to make transactions more efficient and practical.
Tether compared the new unit to satoshis, the smallest division of a Bitcoin, often used for micro-transactions. This structure offers clarity when working with smaller values, especially as gold prices increase. Tether said, “Scudo brings gold transactions closer to everyday usability.”
The firm also stated that users benefit from easier-to-understand figures when transacting, especially in smaller or retail-level operations. This adjustment addresses how gold-backed tokens are priced, stored, and moved onchain. It removes the complexity of long decimal-based calculations in current transfers.
Tether Gold (XAUT) remains the most used gold-backed token by market size and liquidity. According to the company, XAUT represents about half of the total market capitalization for tokenized gold. The category currently holds a combined value of around $4.3 billion.
Tether continues to expand its offerings as demand for tokenized gold rises alongside physical gold’s performance. The launch of Scudo comes at a time when gold’s appeal as a digital asset is strengthening. The change intends to support XAUT users with practical tools for managing smaller transactions.
With Scudo, users can now make streamlined transfers that reflect real-world pricing without large decimal figures. Tether believes this aligns with its broader goal of enhancing stablecoin and commodity token functionality. It said the update will roll out to all supported platforms and wallets in phases.
Gold prices surged throughout 2025, reaching new highs by December, as other major assets posted weaker performance. Spot gold climbed above $4,550 before settling around $4,485 in early January 2026. That placed gold ahead of equities and cryptocurrencies in annual returns.
Bitcoin ended 2025 down around 6%, while the S&P 500 saw modest growth of just over 16%. Tether noted that this environment encouraged further adoption of tokenized gold solutions. The firm stated that interest in gold-backed tokens rose steadily through the year.
Tether Gold benefited from the trend, maintaining leadership in the space while introducing new features like Scudo to enhance utility. With gold’s recent price movement, fractional gold ownership became harder to represent with long decimal values. Scudo now provides a cleaner way to reflect these values digitally.
The company confirmed the update is already active on its backend and will expand to wider integrations in the coming weeks. It emphasized that the new system will not affect existing token balances or XAUT’s underlying structure. All Scudo-based transactions will be converted to gold weight equivalents automatically.
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