Introducing the “1/1000 ounce gold” unit, “stable currency leader” Tether promotes the circulation of “gold stable currency”

# Source: Wall Street Insights

By Bao Yilong

Tether has announced the launch of **Scudo**, a new unit of measurement for its gold-backed stablecoin **XAUT**. One Scudo is equivalent to one-thousandth of a troy ounce of gold. At current prices, a single Scudo is valued at approximately $4.48. Paolo Ardoino, the company's CEO, claims that Scudo lowers the entry barrier for gold transactions.

As the world's largest stablecoin issuer, Tether has introduced this new gold denomination in an attempt to promote the use of gold in the payment sector.

On Tuesday, Tether announced the launch of Scudo via a blog post, defining it as a unit of account for XAUT, its gold-pegged stablecoin. The initiative aims to reestablish gold as a payment method accessible to everyone.

According to Tether's official definition, one Scudo equals 0.001 troy ounces of gold, which is also one-thousandth of one XAUT token issued by the company. Based on prevailing market prices, each Scudo is worth roughly $4.48.

Tether stated that persistent global inflation concerns, interest rate uncertainties, record-breaking gold purchases by central banks, and growing demand for safe-haven assets have created an opportunity to restore gold as a universal, trusted, and transparent means of payment throughout human history.

Data from CoinGecko shows that the market capitalization of Tether's XAUT token has reached $2.3 billion, surging nearly threefold over the past year. The company asserts that its actual gold holdings far exceed the value of its tokens. As of the end of the third quarter of 2025, Tether held 116 tonnes of gold, valued at nearly $17 billion based on Tuesday's prices.

(The market cap of Tether's XAUT token has hit $2.3 billion)

## Creating a Micro-Unit for Gold by Drawing on Bitcoin’s "Satoshi" Concept

Tether pointed out that Scudo functions in a similar way to Bitcoin’s "satoshi"—the smallest unit of Bitcoin, representing one hundred-millionth of a single BTC, which currently trades at around $0.001 per unit.

The term "Scudo" dates back to the 16th century, referring to various coins used in Italy, typically minted by hammering metal blanks. The term derives from the Latin word for "shield".

This connection may not be coincidental given Tether’s logo. Both the company’s CEO Paolo Ardoino and CFO Giancarlo Devasini were born in Italy. Last year, Tether also acquired a minority stake in Italian football club Juventus.

Paolo Ardoino commented:

> Gold has once again proven itself to be on par with Bitcoin as the ultimate store of value. XAUT digitizes gold, and now with Scudo, we are lowering the entry barrier, allowing anyone to own, easily price, and trade even a fraction of the world’s most trusted asset.

Tether emphasized that the launch of Scudo does not alter the fact that the gold backing XAUT tokens is "held in secure vaults". According to the company’s website, individuals wishing to redeem tokens can have gold bars delivered to "any physical address in Switzerland".

Tether’s website indicates that XAUT is backed by reserves consisting of 1,329 gold bars, equivalent to 16.2 tonnes. The company released its first attestation report for the token last April, but the report did not comply with International Financial Reporting Standards (IFRS) due to the absence of key disclosures and statements required of stablecoin issuers.

## Competition Heats Up in the Gold-Backed Token Market

In its blog post, Tether highlighted that while most of its products are pegged to the US dollar, ongoing inflation worries, interest rate uncertainties, record central bank purchases, and rising demand for safe-haven assets have created an opportunity to reinstate gold as a widely accepted medium of exchange.

Last April, Ardoino stated on social media that XAUT had "gained significant traction in emerging markets".

By staking XAUT tokens, customers can obtain smaller amounts of aUSDT tokens, which function identically to Tether’s $187 billion stablecoin and are also pegged to the US dollar.

Months before Tether launched XAUT, stablecoin issuer Paxos introduced PAXG—the first digital asset redeemable for physical gold.

Data from CoinGecko shows that the token’s market cap stood at $1.7 billion on Tuesday, tripling over the past year. Paxos commented:

> Following the approval of its national bank charter by the Office of the Comptroller of the Currency (OCC) last month, PAXG will become the only institutional-grade gold-backed token issued under federal regulatory oversight.

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