Scudo Announced: Tether’s New Crypto and Gold Unit – Here’s the Breakdown
On Thursday, Tether, the powerhouse behind the widely used stablecoin USDT, announced the launch of Scudo, a new unit of account designed to improve the usability of Tether Gold (XAU₮).
The move comes amid a historic rally in gold prices, driven by political tensions and economic volatility, making the commodity a focus for stability-seeking investors.
A new unit of Tether
In it Press releaseTether emphasized that the Scudo unit aims to revive gold as a form of payment accessible to all. Year-to-date, gold has it went up about 70% of the value, currently trading at around $4,482 per ounce.
In addition to Scudo, Tether is launching a new platform called WDK. This framework allows developers, companies, and artificial intelligence (AI) agents to create, deploy, and manage self-hosted wallets compatible with any device and application, continuously supporting XAU₮, stablecoins, and Bitcoin (BTC).
However, Tether saw a significant remaining hurdle: for daily transactions or value assets, working with fractions of an ounce can be difficult.
Long decimal values are often unsound and challenging for practical use. Scudo seeks to solve this problem by providing a simple unit of account, similar to how small denominations develop. traditional currencies as working capital.
One Scudo is defined as 0.001 troy ounce of gold—1/1000 of one XAU₮—making it easy to price and transfer gold-backed values. This method allows users to use whole or partial Scudo units instead of dealing with complicated decimal parts of XAU₮.
Paolo Ardoino on Scudo
Paolo ArdoinoTether’s chief executive officer (CEO), commented on the importance of this development for investors, saying:
Gold is once again proving its role as the ultimate store of value alongside Bitcoin. XAU₮ digitized gold, and now with Scudo, we’re lowering the barrier to entry so anyone can easily own, price, and sell even a small portion of the world’s most trusted asset.
With Scudo, Tether aims to do that gold a reliable store of value and an accurate way of trading, thereby promoting financial inclusion to its global user base. The company made the following statement:
Tether Gold remains fully backed by physical gold stored in secure, verifiable on-chain ownership through Tether’s asset tracking tools. Scudo does not replace the structure or support of XAU₮, but it provides an easy way to measure and convert the value of gold, especially as prices continue to rise.
Featured image from DALL-E, chart from TradingView.com
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