Key Takeaways:
- Tether Gold recently introduces Scudo, a unit is equivalent to 1/1000 XAU₮
- This unit aims to help on-chain gold transactions become smaller, simpler and more practical.
- Scudo does not change the 1:1 gold backing mechanism of XAU₮.
Tether Gold is reinforcing the way users interact with tokenized gold. Scudo releasing focuses on strengthening utility, not changing supply source or restructuring operation model.
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What Is Scudo?
Scudo is simply a tacked covering over Tether Gold (XAU₮). A Scudo = 0.001 XAU₮, i.e. a thousandth of the gold-backed token which represents a troy ounce of actual gold.
Then instead of handling such strange fractions as 0.0037 XAU₮ the units of Scudo, buyers only have to need whole units. For example:
- 1 XAU₮ = 1,000 Scudo
- 0.5 XAU₮ = 500 Scudo
That divides the accounting, wallet screens and peer-to-peer transfers and everything seems more natural.
Tether describes Scudo as a more intuitive way to measure gold on-chain. It does not alter reserves, custody, or redemption terms tied to XAU₮.
Why It Changes On-Chain Gold Usability
Fractions are already owned by gold-backed tokens and decimal-heavy interfaces can send people away when swapping in small amounts, in their daily usage. Scudo addresses that friction.
Smaller Units, Clearer Transactions
Users can now send gold in clean integer values rather than multiple decimal points. That matters for:
- Micro-transfers
- DeFi integrations
- Merchant pricing models
- Cross-border settlements
Tokenized gold has historically been positioned as a store-of-value asset. Introducing a smaller unit signals a push toward transactional use. If gold is to function as digital collateral across ecosystems, simplicity becomes critical.
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XAU₮ Structure Remains the Same
Scudo does not change the fundamentals of Tether Gold.
XAU₮ continues to represent ownership of physical gold stored in secure vaults. One of the traditional store-of-values is tokenized gold; however, the dumping of a smaller portion indicates a transition to transactions that involve daily living.
Every token is one troy ounce of gold, which is of London Good Delivery standard, as per disclosures made by Tether. It exists primarily as an ERC-20 thus you can relocate it anywhere Ethereum-compatible networks execute. Tether has also expanded multi-chain accessibility in recent years.
Scudo exists purely as a measurement unit layered on top of XAU₮. It does not introduce a new token contract.
Competitive Context in Tokenized Gold
Gold-backed crypto assets compete on three fronts:
- Transparency of reserves
- Redemption mechanics
- Ease of use
Most platforms already offer fractional ownership. The difference between Tether these days and the past is the interface and how it fits better in DeFi. Scudo is a brand that is telling you to get tokenized gold that does not have to be any more complex than a stablecoin. With the maturation of the digital asset space, convenience, as opposed to the technical configuration, tends to be a greater motivator of adoption.
