Tether Introduces Scudo to Simplify Gold-Backed Cryptocurrency Payments
Tether has launched Scudo, a fractional unit for its gold-backed token TetherGold (XAU₮), as global demand for safe-haven assets reaches record highs. The new measurement system—equivalent to 0.001 troy ounces of gold, or roughly $4.50—replaces cumbersome decimal pricing with whole numbers, mirroring Bitcoin's satoshi model.
The innovation addresses a critical friction point in commodity-backed cryptocurrencies: impractical pricing granularity. By eliminating unwieldy decimals like 0.023456 XAU₮, Scudo positions physical Gold for real-world transactional use without altering XAU₮'s 1:1 bullion backing. Swiss vaults continue to store the underlying assets.
This strategic MOVE capitalizes on gold's resurgence while testing blockchain's capacity to modernize ancient stores of value. The success metric won't be technical adoption alone, but whether Scudo can transform bullion from a passive hedge into an active medium of exchange.
